Trading strategy based on levels of support and resistance are considered universal. This is due to the fact that the dynamics of the exchange rate of any currency pair is determined solely by supply and demand for a particular currency, but if the current situation in MetaTrader 4 can be estimated even with tick volume, to forecast future purposes it is better to use indicator optional levels for MT4.
Before describing the settings and how to install the indicator, you need to understand the notion of the option. Under the classical option refers to a derivative whose owner receives the right to buy or sell an underlying asset at a fixed price, the acquisition of this right the option buyer pays the so-called "fixed prize".
We, the Forex traders will be interested in options trading, the underlying asset for currency futures traded on the CME Globex platform.
Why the need for optional levels in MT4?
The infrastructure of MT4 does not differ from the analysis of the CME daily bulletins, only in the latter case all the information necessary to look for and count manually. In the case of the indicator, just follow a few simple steps, after which he will mark on the chart all the key elements.
But about the technical side of the question I'll tell you later, but for now pay attention to important theoretical moments, and the first thing you need to remember (to learn, record and hang on the wall), so that the classification of contracts which are of two types - Call and Put.
A Call option is the right to buy the underlying asset at a predetermined price. If the trader buys the contract "call", he will get a profit if the underlying asset will rise in price, the maximum loss is limited to the paid award and the potential profit has no limits.
If a trader decides to sell a call, his profit is limited to the premium that he pays to the buyer, and the losses have no limit.
A Put option is the right to sell an asset, the implementation of which will bring unlimited profit if the price of the underlying asset will decline during the term of the contract, but if you sell a "Put", the profit from the sale will be limited to the value of the award, while the losses from such operations have no "bottom".
Thus, in the process of buying and selling options traders there are such conflicts of interest:
• Buyers who paid a premium, counting on the price reaches a key level (in other words, "strikes" - the execution price), and sellers (receiving award), take every effort not to allow price to reach, favorable to the buyers;
• Buyers of Put and Call options also enter the struggle, because their interests are diametrically opposed.
Optional levels in MT4 just built in order to recognize the important prices, on which the participants of the option market will begin to aggressively buy and sell the asset.
To date, there is only one free indicator with which you can build optional levels in MT4, its name is "Thunderbird-options". All other developments that I came across, were either paid, or required mandatory registration on the website of the author.
Marking eVOLution-options are as follows:
Looks pretty good, but to get this valuable information, you will have to correctly set the indicator for this perform two actions:
1. File eVOLution-options.mq4 copy in the folder of the terminal, where all the indicators.
2. Then go to the directory "MQL4 – Files" and create in it a folder named "Thunderbird-options".
In order for the indicator display the relevant optional levels in MT4, day will have to download special files from the developer's site. They all have a "csv" format and summarize information from the last newsletter CME. You can find them at:
For more convenient presentation of information all reports are grouped by days and collected in the archives:
How to look at the optional levels
If transactions are made on a single currency pair (or asset), you can copy the folder "Thunderbird-options" only one file that summarizes information on the levels for the corresponding tool.
After all of these actions have been executed, is to launch the terminal, open the chart and attach it to the optional levels indicator for MT4:
eVOLution-options for mt4
In the opened settings window, attention should be paid to almost all parameters:
• NumberOfDays – number of days for which the indicator will show the markup.
• HideForLongTimeframe – to reflect on the larger time frames. If set to false, then the H4 and D1 "intraday" level will not be displayed.
• ShowKeyZone – turn key area.
• ShowMajorLevels – show/hide the "best" levels from which you can enter into aggressive transactions.
• ShowMajorCALLLevels – enable displaying of the CALL (play the role of resistance).
• ShowMajorPUTLevels – enable displaying of PUT (play a support role).
Other options designed to adjust colors.
Apply the resulting marking is possible on the classics – buy the pair from support and sell from resistance, or, alternatively, to open positions in the direction of the breakout of key levels. Speaking of which, even the expert makes a recommendation, which way is better to trade:
• if the arrow is pointing up it is a buy above the yellow region;
• if the arrow points down below the key sell zone.
