Product page: https://www.mql5.com/en/market/product/76325
1. Input definitions
2. On Ideas Institutional Levels An example of how to enter some trades using it.
- line mode – ‘Institutional – the lines will be drawn at the levels “000, 200, 500, 800”, around the current price. “quarter point – The lines will be drawn at the levels “000, 250, 500, 750”, around the current price.
- line length – “Full” – lines will be drawn along the entire length of the screen. SHORT – The lines will be drawn from midnight of the current day to the far right of the screen.
- Show in the comment on the graph Right, it will show what the indicator is Consider the upper and lower levels for alerts.
- 000 style – Pattern of lines drawn at the “000” level.
- Show 000 – Display of fonts at the “000” level.
- 000 colors Font color at “000” level.
- 200/250 pattern.
- 200/250 Show.
- 200/250 colours.
- 500 pattern.
- 500 Show.
- 500 colors.
- 800/750 style.
- Width 800/750.
- 800/750 colours.
- Use popup alerts – True will display a message on the screen when the specified alert levels are reached.
- Use notification alerts True will send a notification to the MT4 mobile app when alert levels are reached.
- alert at 000 – True will print a log message and send notifications when the price reaches the level.
- Alert at 200/250.
- alert at 500.
- Alert on 800/750.
Trading around institutional levels gave me an edge in the market, I put my expertise in expert advisors to automate most of my trades. Although I want to offer some of my own concept and manual trading experience to help some who are struggling to find entries or see the market in a certain way.
So what exactly are the institutional levels? How and why do they work?
Some people refer to these levels as “liquidity” or large order block areas, which are potential areas where banks or large institutions are looking to place their orders at a specific price. In theory, this means that these levels act as strong support and resistance points because they are the most used and most psychologically satisfying numbers where traders are likely to gather, and therefore price reacts from these areas.
This isn’t exactly the way I’m trying to see it, I’m trying to look at this concept of institutional levels from a more algorithmic perspective, the market is a self-operating algorithm and we should try to see it that way. How I try to see these institutional numbers is that I imagine the algorithm perceives only the numbers “00, 20, 50, and 80”, and then I aim to cross-reference about only the resulting feedback.
By plotting horizontal lines at these levels using a 4HR line chart, we can see how the price reacts when it reaches these numbers.
Price will use these levels as support and resistance in most markets and I have noticed during times that there have been sudden bursts due to price the initial reaction can start from a touch of the level or It can stop at these key levels.
It should be noted that the price will sometimes form the legs of a larger and smaller structure using the spaces between levels.
So how do we enter trades using these levels? I will share a simple price action strategy. First we need to identify the general trend so that our trading odds will improve!
An experienced trader can look at the candlestick structure and immediately read the trend, it is necessary to look for the previous high and low points that were broken in the direction in which we want to take our trade.
Additional indicators like the 200 simple moving average can be a guide to the trading direction, below the moving average we want to sell only trades and above that we want to buy only trades.
Now we have a direction, how do we get in! We need to focus on the price action around the level and where the candles close.
Once we enter a clear uptrend for a long trade, we want to see the price close above a level and then start using it as support, because the sell trade price will be in a clear downtrend and the candles close lower and start using it as resistance. Entries can be within a 5/10 pips area on either side or a pending order can be placed on the level for an accurate entry.
Where do you place your take profit and stop loss? my is 1:1 35 pips take profit and stop loss, Regardless of whether you entered a 5/10 point zone on both sides, I measure TP & SL from the institutional level from which I took the trade. The reason for this is that the stop loss will then overlap the nearest level and I can place a pending order at that level with the same take profit and stop loss, so if the price doesn’t go in my favour, I can establish somewhat of a clue to the condition of the grid. As the trade enters in profit, I will be tracing the Stoploss to the next level.
In the first picture I labeled each potential trade from 1 to 4. Trade 1 I think was hard to take as there was no clear trend to form but the reaction from the level is clearly visible. Trade 2, you will see a break of a lower structure followed by two candles resisting the “200” level, a descending and backed by “000” for two candles, and then again again the resistance against the “200” again which would have been a perfect entry. Trade 3 did not happen as quickly and the price is clearly struggling to close above the “000” level and above any previous highs, and entering anywhere within 5/10 pips of the level would be a valid trade. Trade 4 could have been seen as a more risky setup as no obvious bottoms were broken but the level was clearly respected.
This is an example chosen to illustrate the strategy, so please do not expect this trade to be executed every time but it is a good starting point for trading using institutional levels.
Please message me if you need any help.