In forex analysis, the support resistance indicator is very helpful for traders to profit from the ups and downs of the price of a currency pair.
Resistance support is the basis of analysis for breakout trading strategies, price action, naked trading, momentum, range trading, and various other forex trading techniques.
Understanding the support and resistance in the movement of currency pairs, then he can get to know the market more closely and predict price movements more accurately. Conversely, if you do not understand it, then setting profit targets and loss thresholds can easily miss out.
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Contents
- 1 Support resistance indicator explained
- 2 Support resistance indicator mt4
- 3 Support resistance indicator mt5
- 4 Support resistance indicator Tradingview
- 5 Support resistance breakout indicator
- 6 Indicators support resistance mt4 android
- 7 Dynamic support & resistance indicator
- 8 Daily support resistance indicator
- 9 Support and resistance indicator free download
- 10 Best support resistance indicator
- 11 Final thought
Support resistance indicator explained
The support resistance indicator is a tool to analyze important levels of support and resistance. The support resistance level is the price zone where the price area is often rejected. So this level is very important and becomes a reference for traders in determining profit targets, stop loss levels, breakout levels, etc.
A support level is a price level that often acts as a price rejection to continue to decline. While resistance is a price level that acts as a rejection of prices to continue to rise.
The support resistance indicator is a tool to analyze, search for or find areas of support and resistance. Furthermore, the price zone will be a reference for traders to decide their entry point. There are various kinds of support and resistance indicators, but most of them are indicators that are leading indicators. A leading indicator is a type of indicator that provides signaling before the price trend is formed.
Support resistance indicator mt4
The MT4 resistance support indicator is an indicator that functions to analyze support and resistance price areas that can run on the Metatrader 4 trading platform. In essence, the MT4 indicator support resistance can also be used for MT5, but the MT4 indicator raw file must be converted to an MT5 file. This requires special skills or requires certain software to convert the file.
The following are some of the MT4 resistance support indicators that are widely used by forex traders to analyze resistance support levels.
Top and bottom of price history
This is the simplest way to determine support resistance is through historical data holding prices. For long-term trading, choosing a large timeframe will assume a further support and resistance zone.
Meanwhile, for short-term trading, most traders choose a low timeframe, to get the closest resistance support level. The easiest way is to draw a horizontal line at the top price and bottom price levels on the price history.
The picture above is an example of a manual top and bottom line indicator support resistance on the EURJPY pair daily timeframe. Often though not always, when the price reaches a resistance support level, there will be price consolidation.
This means that the price will be rejected, or buyers and sellers at that price level will compete with each other so that the direction of the trend becomes a market indecision trend.
Later which one will win, whether the buyer or the seller, usually this prices zone becomes an important point for traders to determine their next position.
Trendline
The next support resistance indicator is the trendline. This indicator can work well in trending market conditions.
How to draw a trendline is to connect at least two valley points in an uptrend market, and connect at least two high points during a downtrend. You can also draw trendlines by connecting peaks to peaks in an uptrend, and valleys to valleys in a downtrend. It can determine support resistance in a market trend. but you should trade with a trend-following style so that there is less risk.
If the price starts to closest the trendline, pay attention to whether a reversal pattern appears on the candlestick. If a reversal pattern has not appeared, it is better to wait and see, and when confirmed you can open a position with stop losses below or above the reversal candlestick.
Fibonacci retracement
For those of you experienced traders, you will know this indicator, an indicator that has a level that is a calculation of the golden ratio.
The levels commonly used in Fibonacci are 0.0%, 23.6%, 38.2%, 50%, 61.8%, 76.4%, and 100% levels.
Fibonacci levels can also serve as a reference for traders to determine areas of support and resistance. The most widely used to determine support resistance Fibonacci levels are 38.2%, 50.0%, and 61.8%.
How to draw Fibonacci is to draw from high prices to low prices on the timeframe during an uptrend. And pulling from low price to high price on the timeframe during a downtrend.
Bollinger bands
This indicator is also very well known, its main function is to measure price volatility. But essentially the BB middle line is a moving average. While the upper band and lower band are calculated using the standard deviation of the value of the BB middle line.
Using Bollinger bands to determine support and resistance areas is very good in a sideways market. Where the price tends to move within a certain range, so the upper band and lower band line can work as both support and resistance.
Pivot points
Even though this is actually a mathematical calculation to get the resistance support level, now many experts have created a pivot point indicator that automatically calculates to get the resistance support price level.
The calculation is based on the highest price, lowest price, and closing price in the previous period, to generate future support and resistance levels.
Formula
Pivot point: (H + L + C) : 3.
Resistance 1 : (2x Pivot point)-Low.
Resistance 2: Pivot point + (H-L).
Support 1: (2x pivot point)- High.
Support 2: Pivot point – (H-L).
Example pivot point indicator
Moving average
Although this indicator is different from other support and resistance indicators because it is a lagging indicator that provides signals after a trend is formed. However, the MA line in fact can be used to determine dynamic support and resistance.
The essence of the idea is that when an uptrend, the MA line serves as a support line, therefore traders will wait for entry when the price touches the MA line. On the other hand, in a downtrend, the MA line serves as resistance. Where will be the reference for short positions when the price is closest to the MA line.
Support resistance indicator mt5
In essence, you can use the support resistance indicator for Metatrader4. Metatrader 5 built-in indicators are available for several support and resistance indicators such as moving averages and Bollinger bands.
Besides that, you can also try the support and resistance indicators for free on the MQL5 market by looking for free indicators specifically for the MT5 trading platform. One of the free support resistance indicators such as PR Support And Resistance for MT5. This indicator has received dozens of reviews with positive feedback.
Support and resistance line for MT5
Another alternative for the MT5 indicator’s resistance support is the Support and resistance line for MT5.
This indicator can show resistance support levels through automatic lines which are algorithm calculations to get resistance support levels.
In addition, the settings allow you to get alerts when the price is at a dangerous point. If you are interested in using this indicator, you can download it from the source on the Earnforex forum.
Support resistance indicator Tradingview
Tradingview is a very popular platform among traders, it has many tools to make a market analysis of various assets such as forex, stocks, cryptocurrencies, and also indices.
You can use the existing support resistance indicator as a helpful tool. Suppose you open a Tradingview chart on the EURUSD pair and you can use the Tradingview tool for analysis, then open a position on your broker’s platform.
You can use the horizontal line to find areas of support and resistance and it is possible to add alerts to get notified if the price reaches a certain point.
Autofibo is also available on the Tradingview platform, so you can explore using the tool and share your analysis with the community. This is a very popular sharing tool.
Support resistance breakout indicator
The basic concept of breakout trading is to open a position when there is a break of the support resistance level. The easiest way to breakout trading is to look for sideways market conditions and wait until a breakout occurs at the support resistance level.
In the sideways market, the movement tends to be narrow and forms a parallel line of price movement. Traders can draw horizontal lines to mark the top and bottom price levels. Here the trader can use pending orders buy stop and sell stop above the resistance level and below the support level.
There is also another strategy with the concept of breakout trading using fractal indicators. The idea is that the fractal indicator becomes the price level of support and resistance, with traders placing pending buy stop orders above the fractal up and sell stops below the fractal down.
Indicators support resistance mt4 android
One of the advantages of using the Android trading platform is that traders can monitor the market anywhere and anytime as long as there is an internet connection.
However, the features of the Android platform are very limited compared to the platform for PC. Support resistance indicator that you can use is your intuition to determine support and resistance levels. Bollinger bands you can use for trading on Android.
You can add indicators to the chart by selecting the add indicator option. However, it only contains a list of built-in indicators, while to add custom indicators we haven’t found a way yet
Dynamic support & resistance indicator
The term dynamic support resistance refers to indicators that provide dynamic signals in determining support and resistance price levels.
One indicator that functions to determine support and resistance levels dynamically is the moving average. The MA line that follows the trend direction serves as a dynamic resistance support level.
Another indicator of dynamic support resistance is the Bollinger band because this indicator also uses the MA line which also functions as a dynamic resistance support line.
Another indicator is the Envelope, it also provides dynamic resistance support levels. To get an accurate picture to determine support and resistance levels you can adjust the deviation settings. According to our observations, the ideal deviation setting is 0.30% with the median price (HL/2).
Daily support resistance indicator
Daily support resistance indicator will draw automatically to provide support levels indicated by blue lines and resistance by red lines.
These levels can be used by traders to use breakout trading strategies, but can also be used in other strategies.
One advantage of using the daily support resistance indicator is that you don’t have to draw it manually.
Daily support and resistance download.
How to install it is, after you download the zip file, extract it in the folder you want. Then open the open data folder on the File menu on your MT4 platform. Open the MQL4 folder then open the indicator folder again and paste the indicator file that you extracted earlier in the Indicator folder on your MQL4.
Support and resistance indicator free download
Above we have shared a daily support resistance indicator for intraday traders. But actually, there are other support and resistance indicators that might be interesting for you to try.
In the MQL5 market, there are also free indicators that you can try to download, one of which is PR Support And Resistance for MT4. This indicator gets a rating of 4.51 stars. 45 traders reviewed by providing positive feedback on the indicator. Go to MQL5 market to download.
Another support resistance indicator that has been downloaded more than 5000 downloads is the Auto Support & Resistance Zones Indicator from Indicatorspot.com. This indicator also provides information on support and resistance zones that are useful for newbies. Go to Indicatorspot to download.
Best support resistance indicator
It may be quite difficult to determine which indicator is the best because support and resistance is a volatile area. It is very flexible. So the picture of the best support and resistance is the most recent one.
Traders use the support-resistance area for further analysis. For example, when the price has closest to the support zone. Traders still need to see if there is a continuation of the trend or a reversal.
Therefore recognizing a reversal pattern is also very important to combine it with a support resistance indicator.
Final thought
Support resistance indicator is just a trading tool. All trading strategies are important to always use risk management to protect big losses in one trading session.
You may want to look for the perfect tool, but there is no perfection all indicators have their drawbacks. Your psychology also determines success in trading.
Note: This article is information and personal opinion only and does not constitute investment advice or solicitation. Forex, crypto, CFD trading is risky. Each investor is responsible for their own investment.
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