Alerts when the price hits important levels (indicator) Binary Options 2020

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Alerts when the price hits important levels (indicator)

Trading according to trend lines or support and resistance may be pretty profitable. Except a clear price action and technical analysis, for this type of trading, we can use some strategies from our web. For example:

These strategies predominantly use indicators which mark either trend lines or lines of support and resistance. You don’t know what that is? You will find explanation at the end of the article. Additionally, strategies use other methods to signal when to enter a trade. However, this article is about something different.

Alert when reaching trend line

If you ever set up trend lines, or any other lines (i.e. horizontal lines) in META TRADER 4, you always have to pay attention and patiently watch for price to come near them. Now you don‘t have to do this anymore as this Alarm4U indicator will alert you exactly for this situation .

We set the indicator for which lines we want to the alarm to fire: Trend lines, Horizontal lines, Vertical lines, Fibonacci lines and more. Afterwards, we enable the alarm. As soon as the price comes near one of our configured lines, MT4 beeps and alert window is displayed.

Download indicator Alarm4U: Uložto.net, eDisk

End of candle alert

A good companion to this indicator is the Interval Timer indicator which makes sure that we are always alerted when the current candle is about to close This is useful when we are following M30 timeframe or similar and we are doing other things. We will never miss an incoming action.

Download indicator Interval Timer: Downlaod this indicator

Double Profit Levels system

Double Profit Levels – free system by Vladimir Ribakov. This is strategy that Vladimir Ribakov offer for free on their Forex Libra Code website ( Forex Libra Code official website). System based on 2 indicators (Moving Averages and filter-indicator) for MetaTrader 4. Double Profit Levels is professional-grade trading system

Double Profit Levels Description

Once the template has been applied successfully, your chart will look similar to this:

You’re now ready to start identifying Buy and Sell trades!

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Before you can begin identifying Buy and Sell trade setups using the Double Profit Levels trading system you need to get familiar with the individual components of the system. It is important to understand how to interpret the different positions you may encounter while trading the system.
There are two indicators that are used in this system.

The first MT4 indicator is called the DPL1 and the second indicator is referred to as the DPL2. Let’s take a closer look at the DPL1 indicator.
As you can see on the image below, the DPL1 indicator comprises of 3 major Moving Average lines (Blue – Fast, Red – Medium and Yellow – Slow) and 5 minor Moving Average lines (2 dashed Blue lines and 3 dashed Yellow lines).
This indicator is used to determine whether the trend is Bullish or Bearish. On the left hand side of the chart below you can see the lines have formed a Bullish channel and on the right hand you can see the lines have formed a Bearish channel.

The DPL1 indicator will ultimately determine the direction in which we trade. If the DPL1 indicator is Bullish, we will only consider entering the market with Buy trades. On the other hand, if the DPL1 indicator is Bearish, we will only consider entering the market with Sell trades.
This is a great way to identify the market direction but in order to really pin point our trade entries we need to use the DPL2 indicator.

On the following chart image, you can see the DPL2 indicator:

When the DPL2 appears Red in color it means the trend is Bearish and we may only consider Sell trades. The appearance of a Red Bearish Entry Arrow on the price chart will alert us to an area where we may consider entering a trade provided all other entry criteria have been met (more info on these other criteria on the next page).
When the DPL2 appears Green in color it means the trend is Bullish and we may only consider Buy trades. The appearance of a Blue Bullish Entry Arrow on the price chart will alert us to an area where we may consider entering a Buy trade provided all other entry criteria have been met.
When the DPL2 bars appear Grey in color it means price is in Neutral territory and we may not consider entering the market under any circumstances.

Double Profit Levels SYSTEM RULES

Now that you are familiar with the indicators used as part of the Double Profit Levels trading system it is time to get familiar with the rules for identifying Buy and Sell trade alerts.

Here are the rules for Double Profit Levels entering Buy trades:

Buy Trade Rules

1. Wait for a Blue Bullish Entry Arrow to appear on the price chart. We will refer to this candle as the alert candle.
2. Confirm that the DPL2 bars are Green in color.
3. Confirm that the DPL1 is Bullish.
4. Confirm that price has broken above either the most recent high or a trendline. If this has not occurred as yet, wait for at least 2 candles to close before considering the signal void.
5. If all previous entry criteria have been met, measure the distance from the low to the high of the alert candle and identify the 50% level. If the most recent high or a trendline is broken a candle or two after the alert candle is formed, you will need to measure the distance from the low of the alert candle to the high of the breakout candle to identify the 50% level.
6. Enter the market with a Buy trade using a market order when price pulls back and touches the 50% level. Alternatively you may place a Buy Limit order at the 50% level instead.
7. Set your Stop Loss a few pips below the most recent low.
8. Set your Take Profit the same distance away from the entry level as your Stop Loss or greater. I recommend a minimum of 1:1 Risk/Reward Ratio or greater.

On the following page you can see an example of a Buy trade as per the rules of the Double Profit Levels trading system.

At Point 1 a Blue Bullish Entry Arrow appears on the price chart, this candle is the alert candle. At Point 2 we can see that the DPL2 bars are Green in color and at Point 3 we can see that the DPL1 has just started to turn Bullish.
At this stage we check to see whether price has broken above either the most recent high or a trendline. In this case, we can see that price has already broken above the High at Point 4. Next we measure the distance from the low to the high of the alert candle and mark the 50% level, shown at Point 5, which will be used as the entry level.
At Point 6 we enter the market with a Buy trade because price pulls back and touches the 50% level. We are now in a Buy trade and we can set our Stop Loss a few pips below the most recent low at Point 7.

Finally, we can set our Take Profit the same distance away from the entry level as our Stop Loss as can be seen at Point 8. As you can see, we are taken out of this trade with a profit within a few candles when price hits our Take Profit.
That’s all there is too it! Now that you are familiar with the rules for entering Buy trades, let’s take a closer look at the rules for identifying and entering Sell trades.

You’ll notice that the rules for entering Sell trades are the opposite of Buy trades. In fact, all you need to do is simply follow the rules of the system at all times and you’ll do just fine. This is the reason why professional traders perform so well. We do not try to predict where the market will move instead we focus on sticking to the rules at all times.
Always remember that if you encounter a scenario that does not match the rules you should avoid placing a trade. I’ve seen far too many traders bend the rules and suffer the consequences.
But enough about that, let’s look at the rules for entering Sell trades:

Sell Trade Rules

1. Wait for a Red Bearish Entry Arrow to appear on the price chart. We will refer to this candle as the alert candle.
2. Confirm that the DPL2 bars are Red in color.
3. Confirm that the DPL1 is Bearish.
4. Confirm that price has broken below either the most recent low or a trendline. If this has not occurred as yet, wait for at least 2 candles to close before considering the signal void.
5. If all previous entry criteria have been met, measure the distance from the high to the low of the alert candle and identify the 50% level. If the most recent low or a trendline is broken a candle or two after the alert candle is formed, you will need to measure the distance from the high of the alert candle to the low of the breakout candle to identify the 50% level.
6. Enter the market with a Sell trade using a market order when price pulls back and touches the 50% level. Alternatively you may place a Sell Limit order at the 50% level instead.
7. Set your Stop Loss a few pips above the most recent high.
8. Set your Take Profit the same distance away from the entry level as your Stop Loss or greater. I recommend a minimum of 1:1 Risk/Reward Ratio or greater

On the following page you can see an example of a Sell trade as per the rules of the Double Profit Levels trading system.

At Point 1 we have a Red Bearish Entry Arrow that appears on the price chart. This candle is the alert candle. At Point 2 we can confirm that the DPL2 bars are Red in color. Next, we can confirm that the DPL1 is Bearish as shown at Point 3 . At Point 4 we can see that price has already broken below the orange trendline connecting the Lows. Since all the entry criteria have been met we can measure the distance from the high to the low of the alert candle and identify the 50% level shown at Point 5.
At Point 6 we enter the market with a Sell trade when price pulls back and touches the 50% level. Finally we set our Stop Loss a few pips above the most recent high at Point 7 and set our Take Profit the same distance away from the entry level as your Stop Loss at Point 8. Price continues to fall and we are taken out with a profit within a few candles.

This part of Forex Libra Code system…. You can read our review of Forex Libra Code here >>

Technical Indicators for MetaTrader 4 – 3

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