Practice shows that trading by levels is one of the most effective trading methods. Today I want to offer you an indicator that is designed to plot levels on a chart. It can become the main component of a profitable TS. Morning Flat plots the levels of the so-called morning flat based on the extremes of the Asian session. A trader can use them to open trade orders. In addition, the indicator uses Fibo levels in its calculations. With their help, he determines possible zones of support and resistance during the day, that is, during the European and American sessions. And now I will tell you about the parameters of this technical analysis tool. Their optimization will improve the quality of the indicator, and hence the trading efficiency.
Morning Flat Settings
There are only 9 parameters in the settings, however, there are only 5 of those that are important.
StartHour and StartMinute are parameters that can be used to tell the indicator at what time it should start making calculations to determine the morning flat levels in hours and minutes.
EndHour and EndMinute are parameters designed to determine the end time of calculations for plotting morning flat levels. And also, respectively, in hours and minutes.
TargetLevel – this parameter allows you to set the fibo level depending on the width of the channel displayed on the chart.
Well, the remaining parameters in the settings can be simply ignored and left with the default values. They relate to the color of the displayed lines.
In MT4, the Morning Flat indicator is set according to the general rules. I have talked about this more than once and even wrote the corresponding article “Cheat Sheet for Metatrader 4” .
Using the indicator in trading
A trade order is opened when the price breaks out the morning flat level. To set a take profit, the indicator’s recommendations are used in the form of lines drawn by Fibo levels. As for the stop loss, its size should be fixed and calculated for the currency pair you are trading.
I would like to note that the level breakout may turn out to be false. In this regard, it is necessary to take measures to reduce risks. For this purpose, it is necessary to select a signal filter indicator. And it is imperative to limit the possible loss using SL.
Try different settings and how the strategy works in general on a demo account. Getting positive results is a prerequisite for switching to real money trading.