The support and resistance levels indicator is a Meta trader indicator used to detect the starting and the ending points of the market pattern. This indicator is used to detect the support and resistance levels in the market trend.
SUPPORT AND RESISTANCE LEVELS INDICATOR: –
Support and resistance levels indicator is used for the detection of dynamic price changes. It is an indicator used for technical analysis in the forex market. This indicator is also used to detect the reversals in the market trend.It is also used to detect the up and downs in the market trend and buys and sell signals in the market trend. Let’s have a look at what support and resistance are?
SUPPORT LEVEL: –
Support is a point or price level in the forex market that is used to stop the downtrend or downward movements of the price actions.It is used to increase the buying rates and decrease demand levels. It helps the price action to remain at a specific position. It also helps the traders to stop the trade due to an increase in the demand level in the forex trading system. It is used to decrease the falling strategy of the market trend. It is also used for historical calculations. Whenever the demand level increases in the market trend the support level will be at the supply level.
RESISTANCE LEVEL: –
Resistance is a point or price level in the forex market used to stop the uptrend or upward movements of the price changes. It is the opposite level of the support level. It is used to increase the supply and selling levels. It also helps the price to remain in the same position if the price is decreasing then it remains to decrease in these levels. It helps the traders to stop the trade when the selling level due to an increase in supply level. It reduces the increasing effect of price actions. It shows its values in the bullish trend.
Support and resistance levels indicator uses different formulas for its precise calculation. The formula is given below: –
Formula:
- First resistance (R1) = (2 x PP) – Low. First support (S1) = (2 x PP) – High.
- Second resistance (R2) = PP + (High – Low) Second support (S2) = PP – (High – Low)
- Third resistance (R3) = High + 2(PP – Low) Third support (S3) = Low – 2(High – PP)
- First resistance (R1) = (2 x PP) – Low
- First support (S1) = (2 x PP) – High
- Second resistance (R2) = PP + (High – Low)
- Second support (S2) = PP – (High – Low)
- Third level of support and resistance:
- Third resistance (R3) = High + 2(PP – Low)
- Third support (S3) = Low – 2(High – PP)
USES OF SUPPORT AND RESISTANCE LEVELS INDICATOR: –
There are many uses of this indicator; some of them are given here. This indicator is used to detect the support and resistance levels in the market trend. it is also used to detect the buy and sell signals in the market trend, also used to detect the increase or decrease in supply and demand strategies in the market trend.
USES
• Support and resistance levels indicator is used to indicate strength trend in the trade.
• Its calculations are based on moving average price.
• It is used to differentiate between trending and non-trending conditions.
• It helps to identify profitable trade.
• From the rise and fall of lines in the Support and resistance levels indicator graph, the traders sense the price climax.
HOW TO INSTALL Support and resistance levels indicator:
• First step: – Download the Support and resistance levels indicator for Meta Trader 4 platform.
• Second step: -Copy Support and resistance levels indicator for Meta Trader 4. mql4 to your Meta trader Directory/experts/indicators/
• Start or restart your Meta trader 4 Client.
• Select Chart and Timeframe where you want to test your MT4 indicators.
• Search “Custom Indicators” in your Navigator mostly left in your Meta trader 4 Client.
• Right-click on Support and resistance levels indicator for Meta Trader 4.mq4.
• Attach to a Chart
• Modify settings or press ok
• In the end, the Support and resistance levels indicator for Meta Trader 4.mq4 is available on your Chart.
How to remove Support and resistance levels indicator :
• First step: Select the Chart where is the Indicator running in your Meta Trader 4.
• Second Step: Right-click into the chart.
• Third step: Indicators list.
• At the last: Select the indicator and delete it.
These are simple and easy steps that you need to follow before starting trade because it gives you buy and sell zone indicator with almost 90% precision.
IMPORTANT
Ahead you are going to begin in real account trading you need to trade at the minimum for one month as a demo in any MT4 or MT5 brokers. It awards you more potential for getting quality payback in long or short term trading across also moving average.
