Trend Key Points indicator is a side tool for traders to specify the pivot points and key levels in trends. You can use this indicator in different ways, but I will tell you my own way. I got excellent results by going this way; I hope it will be useful for you as well.
Each trend has its high and low key points that are important in the next prices. Sometimes it’s hard to find out the points with a naked eye, this indicator marks these points and draws support and resistance lines from previous critical pivot points.
The indicator draws the last two support and resistances of the price by default but you can adjust it in the options. The best practice would be to include the levels drawn in the upper time frames in small timeframes.
I’ll explain it with an example. Let’s say I’m trading in the 4h timeframe. Starting from the above timeframe, I specify the key levels to the target timeframe I mean 4h. Assuming that the monthly levels are important in weekly, daily, and 4h timeframes. The weekly levels are important in daily and 4h timeframes and the daily levels are important in 4h timeframe.
Notice that I don't just settle for the levels drawn by the indicator, and I draw the flat and oblique trends I see myself.
If the key levels do not exist or are far away from the current price in the above timeframes you can rely on an important key point near or a level you think it's important. (w1 and w2 level drawn by myself from a key point)
If the level of higher timeframe overlapped the lower one, the level gains more importance.
After drawing multi-timeframe levels and trend lines, I’m going back to the 4h timeframe and I am looking forward to important price movements to be made at the drawn levels.
Which moves are important to me?
- If a new pivot high or a new pivot low appeared in the key levels or important trendline, I expect a return from there.
- If a new pivot high or a new pivot low appeared in the key level or important trendline and the volume confirmed the pivot, I expect a return from there. What I mean by volume confirm is that volume is greater than the volume itself. Volume confirmation means that the volume is bigger than the volume MA (20 in my case).
- If a candlestick pattern appears at the key level, the pattern will gain more importance. I use Abnormal Pin Bar and Common Candlestick Patterns Indicators for this.
Also, the indicator measures the length of each trend and calculates the average length of recent trends (15 by default). I named it movement step length (MSL). I use this info to predict the possible length of the current unfinished trend.
Usually, the length of the next trend is greater than the average length of the last trend specified by the indicator. Knowing this prevents me from exiting the unfinished trend early, which is quite possible when I'm nervous and have suspicions about the position.
I think the best part is that you can set an alert for the new key point crossing a price level. so you will not have to wait in front of the chart all day.
I am open to any improvement. If you have an idea or a suggestion, don't forget to leave a comment. Any feedback will be appreciated 😊
Each trend has its high and low key points that are important in the next prices. Sometimes it’s hard to find out the points with a naked eye, this indicator marks these points and draws support and resistance lines from previous critical pivot points.
The indicator draws the last two support and resistances of the price by default but you can adjust it in the options. The best practice would be to include the levels drawn in the upper time frames in small timeframes.
I’ll explain it with an example. Let’s say I’m trading in the 4h timeframe. Starting from the above timeframe, I specify the key levels to the target timeframe I mean 4h. Assuming that the monthly levels are important in weekly, daily, and 4h timeframes. The weekly levels are important in daily and 4h timeframes and the daily levels are important in 4h timeframe.
Notice that I don't just settle for the levels drawn by the indicator, and I draw the flat and oblique trends I see myself.
If the key levels do not exist or are far away from the current price in the above timeframes you can rely on an important key point near or a level you think it's important. (w1 and w2 level drawn by myself from a key point)
If the level of higher timeframe overlapped the lower one, the level gains more importance.
After drawing multi-timeframe levels and trend lines, I’m going back to the 4h timeframe and I am looking forward to important price movements to be made at the drawn levels.
Which moves are important to me?
- If a new pivot high or a new pivot low appeared in the key levels or important trendline, I expect a return from there.
- If a new pivot high or a new pivot low appeared in the key level or important trendline and the volume confirmed the pivot, I expect a return from there. What I mean by volume confirm is that volume is greater than the volume itself. Volume confirmation means that the volume is bigger than the volume MA (20 in my case).
- If a candlestick pattern appears at the key level, the pattern will gain more importance. I use Abnormal Pin Bar and Common Candlestick Patterns Indicators for this.
Also, the indicator measures the length of each trend and calculates the average length of recent trends (15 by default). I named it movement step length (MSL). I use this info to predict the possible length of the current unfinished trend.
Usually, the length of the next trend is greater than the average length of the last trend specified by the indicator. Knowing this prevents me from exiting the unfinished trend early, which is quite possible when I'm nervous and have suspicions about the position.
I think the best part is that you can set an alert for the new key point crossing a price level. so you will not have to wait in front of the chart all day.
I am open to any improvement. If you have an idea or a suggestion, don't forget to leave a comment. Any feedback will be appreciated 😊
