One of my favorite ways to trade using Metatrader Indicators is to identify what I call Key level support and resistance. Trading those support or resistance levels on a breakout is one of the lowest risk ways to trade. You can simply place your protective stop on the other side of the breakout, and then many times if you pick you trade right you can trail it for a significant gain.
Low risk, high reward – always smart when trading with Metatrader 4 Indicators right?
Our ”MetaTrader Direction and Levels” indicator does just this. See the screenshot below.
The “MetaTrader Direction and Levels” indicator is extremely dynamic. It not only can reveal current direction and support/resistance levels for any instrument being traded, on any type of chart but can be used in several ways…
Trend indication is shown by the blue/red trend line. Support and Resistance levels can be identified by the blue/red dots.
What I like to do? I don’t immediately buy or sell on the first breach of the support or resistance identified. I suggest you place an Average True Range Indicator on the chart. Then, I would suggest you take somewhere between 1/4 to 1/2 of that Average True Range and trade that many pips above or below the support or resistance. That will give you a nice momentum based confirmation and a safer entry – and avoid false breakouts.