Level Trading 123 Indicator

The Level Trading 123 Indicator is a multi-purpose forex technical indicator that provides bullish and bearish trading signals as well as market reversal points. The indicator is based on Fractals and automatically plots trendlines and important support/resistance levels. It may appear complicated at first glance, but it is suited for both novices and advanced forex traders. It works well in all intraday timeframes, but it also works well in the Daily, Weekly, and Monthly price charts.

What is the Level Trading 123 Indicator?

Based on Fractals, the Level Trading 123 Indicator is a nice indicator for forex technical traders. The indicator generates BULLISH and BEARISH trade indications as well as crucial support and resistance levels. Using these trading signals, forex traders can choose to BUY and SELL. The indicators are suitable for both novice and experienced forex traders. Novice forex traders can quickly recognize reversal moments as well as entry and exit signals. Advanced forex traders, on the other hand, can use complex trading systems to confirm trends and pinpoint entry and exit trading signals.

Setting up the Level Trading 123 Indicator
Setting up the Level Trading 123 Indicator

Level Trading 123 Strategy

The fractals and past swing points govern the reversal levels, which operate as support and resistance levels. As a result, forex traders can expect the price to respect the levels and operate as reversal points. Price action is critical for trend confirmation or reversal. Once a new uptrend line is formed, forex traders could enter a BUY trade because they anticipate a BULLISH market trend. It may be good to place a stop loss below the previous swing low or a price reversal level. A decent risk-reward ratio might help determine the appropriate take profit point. Similarly, once forex traders spot a downtrend line, they can join the market with a SELL position because this signals the start of a downturn. The ideal stop loss may be above the last swing high, and a solid risk-reward ratio may ensure that this position is stable. Because the indicator works on all price charts and time periods, traders can use it for top-down technical analysis.

Buy Signal

The following could be your checklist for a buy trade:

  • When the blue indicator support line appears.
  • When price bounces off the blue line upwards.

Once these events occur:


  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when the red indicator resistance line appears.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Level Trading 123 Indicator Buy Setup
Level Trading 123 Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the red indicator resistance line appears.
  • When price bounces off the red line downwards.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when the blue indicator support line appears.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Level Trading 123 Indicator Sell Setup
Level Trading 123 Indicator Sell Setup

Level Trading 123 Pros & Cons

Pros

  • The Level Trading 123 Indicator helps traders automatically plot trendlines and important support/resistance levels.
  • This indicator could serve as a good confluence tool for traders in addition to price action.

Cons

  • The Level Trading 123 Indicator may sometimes identify a trend correction as a trend reversal, and vice versa.
  • The determination of highs and lows may take time; hence, entry and exit signals may be delayed.

Conclusion

The level trading 123 indicator generates BUY and SELL forex trading signals based on fractals. Traders could, however, check the signals further by using price movement or other technical indicators. Because the reversal level lines serve as support and resistance, forex traders could employ break-out rules and trend continuation criteria to confirm their trades. It is worthy of note that this indicator does not guarantee profits.

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