Trading utilities for MetaTrader 5
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MetaTrader 5
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Overview
Key levels are psychological price levels on the forex chart where many traders base their technical analyses on. These traders are likely to place their bullish or bearish entries, and exit points around these levels. And as a result, key levels tend to be crowded with a high trading volume.
Key levels also attract so much trading volume because that is where institutional traders make their trades as well. And thanks to their big-money moves, key levels are often resilient and lasting.
How to Identify Key Levels in Forex
There are three main types of key levels, and you are most likely familiar with them all even if you’re a novice forex trader. So identifying them should be quite easy.
The Horizontal Key Level
The horizontal key level is made up of forex support and resistance levels. But we aren’t talking about just any support and resistance level. We’re referring to those with lasting historical significance. You’ll find these horizontal key levels on the higher timeframes, such as the weekly and monthly timeframes.
