Certain levels in the markets act as major psychological turning points. These levels can often be big round numbers or what others refer to as bank levels.
In this post, we go through exactly what round numbers and bank levels are and how to use them with free indicators in MT4 and MT5.
What are Round Numbers?
Round numbers can act as major psychological support and resistance levels in the financial markets.
These round numbers normally end in multiples of 0. For example; 1.2000 or 1.2500. See the chart example of the EURUSD below and how price repeatedly respects the round numbers of 1.2500 and 1.2000.
The reason these round numbers work as key levels as support and resistance so often is because of the price action order flow.
When traders are looking to make their trades and these see a round number coming up they will often take notice. They will also often factor these numbers into both their entries and exits.
For example; if a trader is looking to go long when the price moves into the 1.2000 level on the EURUSD, they may instead go long from the 1.2001 level to make sure they are entered.
On the flip side, somebody already long may have their stop just on the other side of this round number, for example at 1.1999.
Round Numbers Indicator MT4
Being able to quickly identify and spot and key round numbers levels coming up can be a huge help in your trading.
Using a MT4 or MT5 round numbers indicator that can help you quickly find these levels can save you a lot of time.
Round Numbers Indicator MT5
This round numbers indicator for MT5 shows you the round numbers on your chart as a horizontal line.
With this indicator you also have the following features;
- Amount of lines you want to have on your charts
- Set the levels in pips
- Choose the different colors to use
- Select how to style the horizontal lines
- Display the lines in front or in the background
What are Bank Levels?
Bank levels are similar to major round numbers. These are the levels where banks are more likely to set their large orders.
These psychological points in the market can then act as major supply and demand zones. These are also often the same levels where you will see price ‘bounce’ or aggressive breakthroughs.
Bank Levels Indicator MT4
This MT4 bank levels indicator draws levels on your charts that start from a minimum of three days and range to a maximum of ten days.
This indicator is the best used when looking to trade either pullbacks from important levels or major breakout trades.
With this indicator you have the ability set adjust the following settings;
- How many days: Ranges from 3 up to 10.
- Choose the color for high level.
- Choose the level for low level.
Bank Levels Indicator MT5
This MT5 bank levels indicator is designed to by Perfect Trend System is designed to add the major psychological levels to your MT5 charts. The indicator automatically detects if your broker is a four or five-digit broker and will then add the key levels for you to look for breakout or reversal trades.