Forex for a trader
Forex strong support and resistance indicator

Forex strong support and resistance indicatorSupport Resistance 4.0. Metatrader Indicator (MT4MT5) Tired of plotting support and resistance lines? The Support Resistance is a multi-timeframe indicator that auto-detects and plots supports and resistance lines in the chart with a very interesting twist: as price levels are tested over time and its importance raises, the lines become thicker and darker. Boost your technical analysis overnight Detect important price levels without browsing through charts Recognize the relative strength of all price levels at a glance Save up to half an hour of plotting lines for every trade The indicator displays the age of all price levels The indicator is non-repainting. Past and present price levels are collapsed by proximity and adjusted to the current market action. Lines are drawn where the action is and not necessarily at the peaks. Price levels get darker and wider as they get rejected over time Unimportant price levels are cleared regularly to avoid noise Customizable timeframe selection and collapse factor It implements emailsoundpush alerts for breakouts Purchase includes the MT5 version. A brief introduction. Resistance and support lines are price levels which temporarily halt or reverse the continuous movement of the trend. When the trend is bearish, support lines are created where sellers are temporarily (or sometimes permanently) exhausted and cannot press the quote any lower. Conversely, during a bullish trend, the price level where buyers are checked is called a resistance line. How are support and resistance levels created?

When a dealer enters a buy order, the broker has the order filled by executing as many offers as possible until the amount the customer desires is reached. If the original order is a large market order, the broker will keep climbing on the price ladder until the order is fulfilled. Support and resistance points are created when the total orders in the market are not enough to clear the offers at a particular price level. When the orders are sell orders, and there are more than enough buyers at a particular price to exhaust the sellers, that price level is called a support; when there are more sellers than the buyers' orders can clear, the price level is a resistance. Since many participants expect a price level to resist or support the quote, that price level will act in the anticipated manner regardless of what the other variables suggest. In a sense, technical analysts claim that traders behave like pack animals. Why support and resistance levels work. Emotionally charged events are remembered better and have a stronger impact in human behavior. The market causes joy or trauma to its participants and this is why support and resistance lines work. But there are a few more reasons. Resistance and support are relatively easy to identify on charts. From the most seasoned analyst to the forex freshman, traders don't have a lot of trouble identifying and drawing support and resistance lines. Support and resistance lines often receive a lot of attention from news sources like Bloomberg or CNBC.

The public is led to identify a particular price as a decisive or key level, and when it acts accordingly, the significance of these levels is easily established. Supportresistance lines are not just imaginary lines drawn at the whim of the analyst. Multi-year, multi-month, multi-week support and resistance are often defended by large order clusters, originating enormous transaction volumes. How to trade using price levels. The basic and most important usage of price levels it not to trade breakouts like most people think, but to recognize price ranges in which a trade can move favorably without being disrupted. Support and resistance levels are not fixed prices, but price ranges: this is why breakouts do not work very well by their own. The best scenario to go long is the following: A support has been tested and rejected, meaning the price has closed above it. Hopefully, creating a reversal or continuation pattern of some sort. The distance to the next resistance is bigger than the distance to the rejected support. This simple fact increases the odds of the trade moving in your advantage without disruption and increases the expectancy of the trade. The exact opposite applies for shorts. Let's look at some examples.

Some trading examples. The goal of using support and resistance lines is to find price ranges in which a trade can move favorably without being disrupted and increase the expectancy of your trades. The perfect setup is a strong rejection of a price level far away from the next one. Below are a few examples. 3 Simple Ways to Identify Support and Resistance in Forex. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly.

You are subscribed to Rob Pasche. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. Support and Resistance Talking Points: Support and Resistance can help guide traders with entries and exits. New traders often make it more difficult than it really is to identify these levels. Learn how to use Psychological levels , Swing highslows, and Pivot Points. "Support and resistance" is common jargon for areas on the chart where price has a difficult time breaking through. Support levels tend to stop price from falling below a specific point and resistance levels act like a price ceiling that price cannot break above.

Knowing where these levels are make it much easier to decide when to open and close trades , but how can we locate these prices to begin with? Today we will cover 3 simple ways to identify support and resistance in Forex. Psychological Levels. Often called "psych" levels, psychological levels occur when price ends with multiple 0's. It's human nature to gravitate towards round numbers when discussing any topic that involves numbers, Forex included. For example, when traders talk about what they think the Euro will be worth in the future, they probably won't give an answer of 1.4278 or 1.3044. They are much more likely to round off the price to something simpler, like 1.4300 or 1.3000. The same thing happens when Forex traders place their orders. We will often see clusters of orders around these whole numbers, which creates price levels that can affect how price behaves. That's exactly what we want for our support and resistance levels. The most common psych levels involve price having two zeros at the end (not including the 110th of a pip ), such as 1.64 00 or 102. 00 . More powerful than that would be psych levels ending in three zeros, such as 1.3 000 or 12 0.00 . Leaving the most powerful psych levels of all, four zeros at the end, 1. 0000 or 1 00.00 . The chart below has four levels drawn at psychological levels. We can clearly see their effect on price action. Learn Forex: Psychological Levels. Another great way to find support and resistance levels is to mark levels in the past where price had a difficult time breaking through. As price moves up and down, each level that price has bounced off of could be a level in the future that price bounces off of again. This is a manually intensive method and takes time to draw on all the currency pairs that we trade, but can pay off in the long run. Learn Forex: Swing Highs & Lows Acting As Support & Resistance.

As the EURUSD chart shows above, a level was drawn when price reached a new high or low (red circle). Later when price approached these levels again, they bounced off the same levels (white circles). The effect will not always be this clean, but it does occur fairly often. This is a method used quite often in Range Trading . We can buy at support with our stop loss below and we can sell at resistance with our stop loss above. Arguably the easiest support and resistance levels to add to our charts, pivot points are a built-in indicator on many platforms that will automatically draw key levels without any effort on our part at all. Pivot points are created by the previous period's High, Low and Close prices, with the most common period size being the Daily period. We can use these levels just like any other potential support and resistance levels on our charts. Learn Forex: Pivot Points. Support and resistance doesn't have to be confusing. We can mix and match any of the methods above and create a healthy amount of price levels that we can trade. As always, practice makes perfect.

So make sure to test out these methods yourself on a real time demo account. New to forex? Our Beginner Guides dive deeper into support and resistance showing how beneficial they can be to the Forex market. ---Written by Rob Pasche. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. The Best Support and Resistance Indicator for MT4. Support and resistance trading can be a very profitable trading strategy. However, most of the time when we look for support and resistance indicators for Metatrader 4 (MT4), we get an indicator that draws a whole bunch of lines at every swing high and swing low and it turns it into an absolute mess. We’re left staring at the mess and scratching our heads in finding our how exactly to calculate important support and resistance levels. There simply isn’t a proper way to filter out which lines are stronger, which are weaker and which should be completely ignored. Now, this is where The Forex Army has finally, after months of fine tuning, built an indicator that helps accurately identify support and resistance trading zones. The reason for this is more often than not, support and resistance comes in the form of ‘zones’ and ‘areas’ instead of specific ‘lines’ which most indicators make the mistake of. Given our in-depth understanding of technical analysis in determining support and resistance levels, we’re able to factor all these in during the creation of this indicator. 1. Support and Resistance Simplified. Support and resistance levels are essentially key levels a person should watch out for because previous price action between the bulls and bears have given us a key sign into the importance of those levels. See price failing to break above this resistance line for the past 3 times?

That’s clearly a strong level to pay attention to. If you see price failing to break below this horizontal support line multiple times, it is a strong level to pay attention to too. One of the most common questions we’re asked is how to determine resistance and support lines – especially which ones are the most important since based on how we draw them, almost every level can be an important level. Quite simply put, there are many ways to draw support and resistance lines but only a few correct ways to do so. There are ascendingdescending lines (most inaccurate) because the subjective nature of taking the proper levels is too subjective. There are channels which require at least 2 points on top and 2 points below which are fairly more accurate. Then there are horizontal supportresistance levels which are the most accurate because it leaves extremely little room for subjective interpretation. To this tune, we’ll be focusing on the key support and resistance levels from such horizontal linesareas. 2. What makes the TFA Support & Resistance Indicator different? What makes this support vs resistance indicator different from all the hundreds others out there is that it filters out a lot of the weak levels and on top of that, it doesn’t only find support and resistance levels, but instead more importantly, find support and resistance areas. This gives a much better idea on which levels to watch out for. The system is also able to find graphical overlaps (very strong form of support and resistance) which is essentially a supportresistance level at which price initially broke and re-tested without success. There are many sites out there including the resistance vs support articles on investopedia that teaches you the very basics of support and resistance, but we’re different, we take it two and even three steps further as we show you how to combine it all together to come up with a really fantastic support and resistance trading strategy. 3. Explaining Resistance.

The Resistance is always above current price. A couple of the key signs of resistance to look out for are swing highs. Another form of resistance is the pullback resistance. This is when a previous swing low is converted into a resistance because price had broken below is and is now rising to test it again. Here is how a swing high and a pullback resistance looks like : Support and resistance indicator for MT4. When more than 1 swing high combine, it becomes a stronger level of resistance. Support and resistance trading zones. Pullback resistance turns into a strong graphical overlap resistance if price reverses off it. This shows that there are more bears than bulls at this key decision point. 4. Explaining Support. The Support is always below current price. A couple of the key signs of support to look out for are swing lows as seen here : When more than 1 swing low combine, it becomes a stronger level of support. Multiple swing lows now form a support area. Another form of support is the pullback support . This is when a previous swing high is converted into a support because price had broken above it and is now dropping to test it again. Previous swing high resistance turns into pullback support.

This pullback support turns into a strong graphical overlap support if price reverses off it. This shows that there are more bulls than bears at this key decision point. 5a. Support & Resistance Indicator Settings. I highly recommend watching this video to see how the support and resistance indicator works on an MT4 chart. I explain in detail the settings below too. There are a few settings that you should understand about this indicator to better help you use it effectively. SwingSensitivity : This is how many bars you would need on the leftright of a highlow to create a swing highlow. This means that for example, if you have 20 as this value, then the swing high would require 20 bars to the left and to the right of it to be lower than it to create the swing high point. The higher this value, the stronger the swing highslows you identify. InitialPips : What the indicator does is it takes these swing highslows and plots a line to detect whether it coincides with other swing highslows. The InitialPips value is the ‘buffer’ it uses to detect whether another swing highlow is near it. A value of 5 would mean it scans 5 pips above and below the first swing highlow for any other swing highlow to reach it. The key idea here is to find areas where multiple swing highlows coincide. 15 min chart : 5. 30 min chart : 7. This is not a hard and fast rule, rather, the main idea is to provide more scanning area for overlaps as the time frame goes bigger. FurtherPips : Once the second swing highlow is reached, the indicator will use this new resistancesupport area and do a modified scan based on FurtherPips. This works the same way as InitialPips. 15 min chart : 9. 30 min chart : 15. This is not a hard and fast rule, rather, the main idea is to provide more scanning area for overlaps as the time frame goes bigger. BrokenCount : This value scans how many times the particular supportresistance identified has been broken.

The more times a supportresistance level is broken, the weaker it is. A value of 0 means that the level can be broken only once. If it is broken a second time, it disappears. BrokenBars : This is the number of bars that must be closed below the supportresistance level for it to be considered truly broken (links with BrokenCount above). The reason for this is sometimes price tests these supportresistance levels and bounces back (like a doji). This actually means the supportresistance level is stronger and such a filter allows us to prevent such price action from tricking us. I prefer to keep this at about 3 across all time frames. ToggleStrength : This toggles the thin lines with only one swing highlow and the thicker lines with at least 2 swing highlows connected. This helps you pick out which are immediately the stronger levels to watch out for. 5b. How do I get this indicator? Special edit : So a lot of people (and I mean a lot) have been asking me how they can get a hold of this indicator. I don’t usually offer this indicator for sale separately but i’ll be doing this moving forward. If you want a copy of this indicator, please click the link below. Support and Resistance Zones – Road to Successful Trading.

This Support and Resistance Zones Strategy will enable you to take trades exactly at the area price will reverse. Trading support and resistance lines is critical for every trader to implement into their system. In this article you will learn how to calculate support and resistance, identifying support and resistance trading zones, stock support and resistance approach to trading, along with forex trading support and resistance. I am going to guide you every step of the way how to trade support and resistance in forex, how to trade support and resistance in stocks, and how to trade support and resistance in options, with this simple to learn and easy to understand the trading strategy that we have developed. After you read this strategy, you will be able to identify these sweet spots where marvelous price action happens so keep reading and you won’t regret it. Also, read trading discipline which is also a most important skill for successful trading. What indicator are we using for this strategy? Indicators Used in the Support and Resistance Zone Strategy. Our indicators for this strategy will be price action and its relationship to Support and Resistance. to be honest, this is, in our opinion, the best way to trade support and resistance. So what exactly are these key areas? How to trade support and resistance levels? Before we explain the strategy we are going to define support and resistance. Here is another strategy called The PPG Forex Trading Strategy.

What is Support? We have a specific article on this very topic so go ahead and read that here if you do not know what support or resistance is. Support is the level where price finds it difficult to fall below until eventually it fails to do so and bounces back up. It’s simply many traders making trading decisions at that level. What is Resistance? Resistance is the level where price finds it hard to break through to rise above it until it fails to and is pushed back down. You should always suspect a reversal at Support and Resistance as there is a high probability that price action will reverse at those key levels. That’s because it already did that before in the past and it will continue to do so in the future as traders will always take caution on these levels so some who had open trades will exit at those levels and others will initiate new trades at these levels and that’s why it is crucial to learn to draw these Zones. Steps for trading Support and Resistance Zones Strategy. Now that we know the role of S&R Lines, which from now on we will call Zones. That’s because support and resistance are not a given line if so it would super easy for traders to know and every trader on the planet would have an entry order at that price. They are more like zones that can be breached and pushed into and then it may pull the price action back out of it or maybe price action will succeed in breaking it for good so Zones and far better term to describe it. Our main purpose in this Trading Strategy is to identify those Zones and use them for our favor and make great trade entries and exit points.

The First step of the support and resistance zone strategy. The first step of this strategy is drawing those Zones on our charts so that we can easily spot where the price would probably reverse. After you do this, it will resemble a support and resistance indicator only you now have zones to take advantage of. Drawing Zones on the chart is better done on a higher time frame so that we can examine the main reversal levels and the more critical points on the chart as a higher time frame shows us the bigger picture. Its almost like what we talked about in our article about the importance of multiple time frame analysis. We begin by drawing horizontal lines on recent Peaks and Bottoms like you see below in our chart example: Examine this chart as it is critical for you to understand these zones. When you are doing support and resistance trading, a line with multiple touches is far better off as it is clear that it stood against the price and passed the test for many times and it will continue to do so. WHY? Because History always repeats itself and this continues to happen time and time again on every chart that you will ever look at. (Stocks, Options, Forex) Note** Make sure to leave spaces between zones as drawing many lines will confuse you and worsen your trading decision. This strategy could easily be compared to our Red zone strategy that shows you how to draw zones on your chart. When you take a look back after drawing Zones will find that those lines withheld the price for numerous times before and will continue to do that for numerous times more. The second step to identifying support and resistance Zones: The second step is waiting for the price action to touch the Zone so what you can do is set your charts on 2 to 4 currencies and wait for your chance as it may take some time for the price to reach the support resistance levels. The reason we say 2 to 4 currencies is because this is a good number of pairs to be looking at and will not overwhelm you mainly so you have a good judge on your trade opportunity. Basically, the higher time frame takes less time and attention than the smaller time frame alternatively, the smaller time frame has more signals as the zones may get hit more frequently so you have to be more focused if you’re trading small time frames. In this chart we see the price action approaching support and actually almost touched the support so we wait to see the form and shape of the next candle. If the price reverses that will be good as it is what we are expecting but need a strong reversal candle though to assure that price will reverse and that it will not collapse back again. On the other hand, if it breaks that level it may be real breaking or a fake breaking so we also should see a strong piercing candle that effortlessly break that level to assure it will continue on the same way. The third step for the strategy is: The Third step of this trading strategy is to wait for the candle which hits the zone to close as this will be probably the signal candle we are waiting so look at that candle. Is it a bullish or bearish candle, is it strong or weak, big or small, does it have long wicks or small wicks or no wicks at all, when you can identify the kind of candle then you will be able to decide whether to sell short or buy long.

Knowing the type of candle is crucial to identify whether the entry is valid or not. In the chart example above we see how Support rejected the price and pushed back up and we see the candle that formed afterward to signal the end of the down movement and the beginning of and upward movement. So how did we know it is strong, what its secret? Before we go any further, here are some important factors in determining a strong candle because spotting that specific candle on zones makes the difference between winning trades and losing trades. The Qualities of a strong candle are: Long body Formed after the previous touched the level but could not break it. Entirely taken the two previous candles. This example shows us how a strong candle should look like as we see how the strong candle over power the one before. Here, you can see that those weak candles were not able to breach the Resistance line and had long wicks and could not break that level so we wait to see what will happen with the next candle will the price action break that level or will the resistance win and the price reverses. On the first case ( the candle on the left that we marked for you): clearly, the price fell on the next candle which made it a valid reversal. While in the second case ( the candle on the right that we marked): we had a very small candle which did not mean anything except that the resistance stalled the price for a while. The Fourth step to this support and resistance strategy after you analyze your Zones: The fourth step is to identify where you will enter the trade. Here are the entry criteria. EntryExit Criteria for this support and resistance trading strategy: Your entry should be slightly above or below the signal candle which is the strong candle, this way you are adding more confirmation to your trade to make sure that the price will move towards the direction you expected it to move to. Our stop loss should be placed on the other side of the zone and not too close to the level to give it some space as we said it is a Zone, Putting the Stop loss there because this the end of the trade as the price is unlikely will reverse after that point. So according to the rules of thes strategy below is an example trade: We used a 3 to 1 RR but you can adjust according to your rules.

Now we have learned from this Support and Resistance strategy how to draw Zones and how to trade them successfully and how to determine the direction that the price will probably move to, so we could have a better edge in our trading. If you liked this strategy or still need to more information please leave a comment below and we will answer your questions! Trading support and resistance, and discovering support and resistance zones are pivitol to your trading success. Our Fibonacci channel strategy, and the Red zone strategy are versy similar and will help you in understanding exacly what these so-called “zones” are as well so you can check them out also if you wish! Thanks for reading! Please leave a comment below if you have any questions about Road to Successful Trading! Also, please give this strategy a 5 star if you enjoyed it! ( 2 votes, average: 4.50 out of 5) Like this Strategy? Grab the Free PDF Strategy Report that includes other helpful information like more details, more chart images, and many other examples of this strategy in action! Tap on the E-Book Cover Below to get your copy of this Free strategy today. Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! Best Forex Strategy | Forex Indicator | Forex Strategies - Support and Resistance Indicator For Forex Trading. In this post, I am going to share with several indicators that can serves as a strong level of support and resistance for your trading. Some of you may be wondering what is the purpose of finding support and resistance when you are trading. If you take a look at your forex chart, you will … In this post, I am going to share with several indicators that can serves as a strong level of support and resistance for your trading.

Some of you may be wondering what is the purpose of finding support and resistance when you are trading. If you take a look at your forex chart, you will find that the price are always moving in waves form. This is because the price are being repelled and attracted by levels of support and resistance. These levels act like magnets, they tend to repel price when it first touches it. At the same time, it will also attract price to move towards it when they are distance away. If you have been reading up on forex books, you should have heard of past support turns resistance or past resistance turns support. For those of you who are new to trading, I will take this opportunity to tell you more here. Most of the time, you will find that the price tends to come back to retest the trend line or S&R levels that it has broke. This is because the support level that is broken will immediately turns into a new resistance level. Before the price continues to move in the direction of the breakout, it will most probably comes back to test the new resistance. If it is successful, the new resistance will repel the price and the market will then move in the direction of the breakout. Therefore as a trader, it is very important for us to be able to identify levels of strong support and resistance. These levels can serve as a good entry or exit point for us. In this post, I shall be sharing with you several forex support and resistance indicators that you can use in your trading. 1) Fibonacci - This is one indicator that is commonly used by those institution traders and therefore the levels that is provided by this indicator are often seen as strong levels.

To see how to draw the Fibonacci levels, you can take a look at this post that I have written. Not all retracement levels are considered strong levels, from my trading experience, I only see the 0.382, 0.500 and 0.618 as strong levels that will repelled the price. 2) Pivot - The pivot point is another indicator that is commonly used by those institution traders as well. Similar to the Fibonacci indicator, the pivot point serves as a strong level of S&R. There are some trading platform that can plot the pivot points automatically for you. For those of you who are using MT4 platform, you may have to calculate the pivot level yourself. Below are the steps to calculating your own pivot levels. Step 2: Take the open value of the candle on the 0000hr of the previous day. Step 3: From the 0000hr of the previous day to the 0000hr of today, note down the lowest value the market has hit and the highest value the market has hit. Step 4: Enter the data into the Pair 1 box and click on calculate and the software will calculate the pivot levels for you. What you do is then add the pivot level yourself using the horizontal line drawing tools on your platform. 3) Bollinger Bands - This is an indicator that is made up of an upper band and a lower band. The upper band serves as a strong level of resistance while the lower band serves as a strong level of support. If you plot this indicator on your trading chart, you will find that the price will tend to be repelled by these 2 levels. To find out more about how to use this bollinger bands indicator, you can read the post below.

4) Exponential Moving Average - Not all EMAs are considered strong S&R, from my own experience, the 200 EMA is one of the best S&R level for traders. I will plot this indicator on all my trading chart as it serves as a very strong S&R level. From the picture above, you can see that the price often get repelled by this indicator and this shows that this is a strong S&R levels. The above are 4 support and resistance indicators that I used in my forex trading. I hope that you guys find them useful for you and do feel free to give your comments below. If you find this post useful for you, please click on the Like or G+1 button. Best Support and Resistance Indicator for MT4. What’s the best support and resistance indicator for Metatrader 4 (MT4)? If you’re like me, and you scan several pairs in the Forex market for trade setups, then you have probably found it to be quite tedious at times to manually plot out your support and resistance lines. Manually plotting out your support and resistance lines (or zones) is usually the best way to go, assuming you know how to properly plot them. However, many good indicators have been developed that can handle this task pretty well. The importance of incorporating support and resistance into your trading cannot be overstated, as the market usually has, at least, a brief interaction with any important support or resistance level. Note: Price will sometimes race right through support or resistance levels like they don’t exist, especially in the Forex market.

To learn why this happens and more support and resistance tips, download my free eBook, How to Choose Better Support and Resistance Levels . Horizontal support and resistance levels are not the only levels that you should be concerned with either; often, moving averages (e. g. , the 50, 100, and 200 SMA) will provide dynamic support and resistance, although these levels are far less dependable. In addition, trend lines often act as support or resistance. You don’t need to download anything (other than MT4) to plot out dynamic support and resistance or trend lines, as the default trading platform is equipped with moving average indicators that you can just drag onto your charts, as well as trend line drawing tools. For the purpose of this article, we will focus on horizontal support and resistance indicators. Best Support and Resistance Indicator for MT4. I personally plot all of my horizontal support and resistance levels manually, and I honestly believe that is the way to go. However, if you use pivot points, there are a few good, free indicators that can automatically plot these points for you in MT4. The best one that I’ve seen is vS_PivotsD (pictured below). Click for larger image (opens in a new window) Note: I’ve also added the newer version of the indicator, vS_PivotsD_v4. I like the original version of the indicator more, but I’m adding the newer version here now in case some of you prefer that one. This handy indicator automatically plots your pivot point, based on the Daily chart or Fibonacci levels. It plots the previous day’s high and low, S1-S3, R1-R3, and all of the mid-range support and resistance levels. It can even plot inner and outer Fibonacci levels for you. One of the reasons I believe this is the best support and resistance indicator for MT4 is the fact that there are a ton of options to customize this indicator to your preferences. There are 80+ fields that can be edited under the “Inputs” tab alone.

Don’t let the abundance of options scare you away from this indicator, though. It’s actually very simple to implement, while still providing options to change colors, display positions, custom session times, etc…. I only had to change a few settings to get the display in the chart above. After installing, you’ll probably want to bring up your period separators ( Ctrl+Y ), and make sure the indicator’s new day is aligned correctly. If it needs to be adjusted, simply edit the “LocalTimeZone” or “DestTimeZone” variables. The default settings were correct on my charts. Installation Instructions: Download and extract the custom vS_PivotsD or vS_PivotsD_v4 indicator. Place it in your “Indicators” folder ( File > Open Data Folder > MQL4 > Indicators ). Restart MT4. Open your “Navigator” window, if it’s not already open ( Ctrl+N ). Drag the vS_PivotsD or vS_PivotsD_v4 indicator onto your chart. Adjust the settings and colors, if needed, and hit the “OK” button. You may have to play around with the settings for a bit to get the appearance you’re looking for. Although there are many options, the lesser-used features are set to “false” by default. I recommend setting the “ShowPanel” and “ShowDayCandle” variables to “false” for a cleaner chart. In my experience, this is the best support and resistance indicator for MT4. I haven’t been able to find any good swing point support and resistance indicators.

There are a few options available, but they aren’t very good. I have two ideas that I believe would make excellent support and resistance indicators, but I need a talented MQL4 programmer to code them for me. Leave a comment if you think you’re up to the task. Are you still looking for a profitable trading system ? I recently changed my main trading system after testing a new one for over a year. Come see why I switched to Day Trading Forex Live. Surprisingly Good Support & Resistance. Like This Unlike David 06 Aug 2014. I'm not sure if anyone else has given this support and resistance indicator a try, but this has been looking very nice. A lot of these lines have been dead on from my testing. Downloads are below for those of you who want to try it. Like This Unlike rommark 06 Aug 2014. Like This Unlike swede 06 Aug 2014.

Finally, a supportresistance indicator that uses closing prices. with all the significant time frames on one chart. thanks for posting that David. very useful indeed. Like This Unlike David 06 Aug 2014. No problem! Couldn't pass up posting this for everyone as I've not seen any other S&R indicators like it that were this good. Like This Unlike swede 07 Aug 2014. See post 204 from this late NY session in the "introduction to Ichimoku" thread. Like This Unlike BryanMac 07 Aug 2014. I threw it on my ichi charts also I like it a lot. Like This Unlike Rustyh6281 07 Aug 2014. Three big players supporting this . must be worth its salt!

Like This Unlike atcsd 09 Aug 2014. Like This Unlike johnjacob 09 Aug 2014. i think almost every strategy or all here at BOE will work if apply the s&r david provide..thats what every strategy was missing a good s&r indi..thanks david. Like This Unlike hmrukltd 10 Aug 2014. @David I tried this indicator on friday and I must say for those that find it hard spotting and drawing your sr levels manually this right here saves you all the hardwork, it's simply brilliant. People do not ignore this is a GREAT share David. Like This Unlike vulcan 10 Aug 2014. @David…what website did you find indicator from , please. Like This Unlike alan 10 Aug 2014.

how to use this indicator? what are the different line types and time frames on them means? which ones are stronger signals? David: but now that you shared this indicator, this will quickly gets saturated and become ineffective. Like This Unlike oakman 10 Aug 2014. In reference to the last part of your post Allen. Don't worry. That would be basically impossible. Like This Unlike marklee 10 Aug 2014. Like This Unlike johnjacob 11 Aug 2014. here's a horizontal line with alert to help you guys who have multiple charts open . just place it on top of the s&r indicator.

if you want to have two or more H Line on your chart just change the number on the myline1 to myline2 and so on .. Like This Unlike alan 12 Aug 2014. david: help us. we know that you are a wealthy person. $1000 or $10000 is like a pocket money for you. please help us to earn a few dollars a day at least. dont ignore us like this. Like This Unlike BryanMac 12 Aug 2014. david: help us. we know that you are a wealthy person. $1000 or $10000 is like a pocket money for you. please help us to earn a few dollars a day at least. dont ignore us like this. As support and resist is a fundamental skill when trading i would suggest starting with the below info, there is no secret to it it is just understanding the concept.

And I dont think you were being ignored, its just that SR is such a basic concept and one of the 1st you should learn as it compliments every part of trading. Like This Unlike acuter 12 Aug 2014. Go to urbanforex. com , and click on Pip Milking , ( AKA " Milky" ) , for the basic pattern strategy . It is ALL you will need to determine objective Support Resistance . Switch to a LINE chart , and watch for ascending. letter M shapes , and descending letter W shapes . It takes a bit of patience , and practice to discern some of the. irregular letter shaped patterns , but it is time well spent . " Milky " does not require any indicators ; and , it works.

Like This Unlike Rustyh6281 12 Aug 2014. Ha ha . Acuter banging his Milky drum! It does work though . so keep banging! Like This Unlike swede 12 Aug 2014. all i want is just a reliable system with indicators that tells me when i buy and sell. thats it. is there any such system that is profitable? so far i cant find any profitable system. That my friend is all anyone wants. but I suspect you want it handed to you on a platter, without any research, without any study, without any education, without any effort on your part. you want to have a message or alert to tell you when to buy and sell. ..I sure hope you are not investing any real money in trading at this point.

Why not take one month, read everything there is to read on trading, then come back and ask some intelligent questions. and they should not include "what is supportresistance?" There are many profitable traders in these rooms. but it took some of them years to get profitable and there are no easy solutions. Support Resistance 4.0. Metatrader Indicator (MT4MT5) Tired of plotting support and resistance lines? The Support Resistance is a multi-timeframe indicator that auto-detects and plots supports and resistance lines in the chart with a very interesting twist: as price levels are tested over time and its importance raises, the lines become thicker and darker. Boost your technical analysis overnight Detect important price levels without browsing through charts Recognize the relative strength of all price levels at a glance Save up to half an hour of plotting lines for every trade The indicator displays the age of all price levels The indicator is non-repainting. Past and present price levels are collapsed by proximity and adjusted to the current market action. Lines are drawn where the action is and not necessarily at the peaks.

Price levels get darker and wider as they get rejected over time Unimportant price levels are cleared regularly to avoid noise Customizable timeframe selection and collapse factor It implements emailsoundpush alerts for breakouts Purchase includes the MT5 version. A brief introduction. Resistance and support lines are price levels which temporarily halt or reverse the continuous movement of the trend. When the trend is bearish, support lines are created where sellers are temporarily (or sometimes permanently) exhausted and cannot press the quote any lower. Conversely, during a bullish trend, the price level where buyers are checked is called a resistance line. How are support and resistance levels created? When a dealer enters a buy order, the broker has the order filled by executing as many offers as possible until the amount the customer desires is reached. If the original order is a large market order, the broker will keep climbing on the price ladder until the order is fulfilled. Support and resistance points are created when the total orders in the market are not enough to clear the offers at a particular price level. When the orders are sell orders, and there are more than enough buyers at a particular price to exhaust the sellers, that price level is called a support; when there are more sellers than the buyers' orders can clear, the price level is a resistance. Since many participants expect a price level to resist or support the quote, that price level will act in the anticipated manner regardless of what the other variables suggest. In a sense, technical analysts claim that traders behave like pack animals. Why support and resistance levels work. Emotionally charged events are remembered better and have a stronger impact in human behavior. The market causes joy or trauma to its participants and this is why support and resistance lines work.

But there are a few more reasons. Resistance and support are relatively easy to identify on charts. From the most seasoned analyst to the forex freshman, traders don't have a lot of trouble identifying and drawing support and resistance lines. Support and resistance lines often receive a lot of attention from news sources like Bloomberg or CNBC. The public is led to identify a particular price as a decisive or key level, and when it acts accordingly, the significance of these levels is easily established. Supportresistance lines are not just imaginary lines drawn at the whim of the analyst. Multi-year, multi-month, multi-week support and resistance are often defended by large order clusters, originating enormous transaction volumes. How to trade using price levels. The basic and most important usage of price levels it not to trade breakouts like most people think, but to recognize price ranges in which a trade can move favorably without being disrupted. Support and resistance levels are not fixed prices, but price ranges: this is why breakouts do not work very well by their own. The best scenario to go long is the following: A support has been tested and rejected, meaning the price has closed above it. Hopefully, creating a reversal or continuation pattern of some sort. The distance to the next resistance is bigger than the distance to the rejected support. This simple fact increases the odds of the trade moving in your advantage without disruption and increases the expectancy of the trade. The exact opposite applies for shorts. Let's look at some examples.

Some trading examples. The goal of using support and resistance lines is to find price ranges in which a trade can move favorably without being disrupted and increase the expectancy of your trades. The perfect setup is a strong rejection of a price level far away from the next one. Below are a few examples. Forex Support and Resistance. Support and resistance is one of the most widely used concepts in forex trading. Strangely enough, everyone seems to have their own idea on how you should measure forex support and resistance. Let’s take a look at the basics first. Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). As the market continues up again, the lowest point reached before it started back is now support . In this way, resistance and support are continually formed as the forex market oscillates over time. The reverse is true for the downtrend. Plotting Forex Support and Resistance. One thing to remember is that support and resistance levels are not exact numbers .

With candlestick charts, these “tests” of support and resistance are usually represented by the candlestick shadows. Notice how the shadows of the candles tested the 1.4700 support level. At those times it seemed like the market was “breaking” support. In hindsight, we can see that the market was merely testing that level. So how do we truly know if support and resistance was broken? There is no definite answer to this question. Some argue that a support or resistance level is broken if the market can actually close past that level. However, you will find that this is not always the case. Let’s take our same example from above and see what happened when the price actually closed past the 1.4700 support level. In this case, the price had closed below the 1.4700 support level but ended up rising back up above it. If you had believed that this was a real breakout and sold this pair, you would’ve been seriously hurtin’! Looking at the chart now, you can visually see and come to the conclusion that the support was not actually broken; it is still very much intact and now even stronger.

To help you filter out these false breakouts, you should think of support and resistance more of as “zones” rather than concrete numbers. These highs and lows can be misleading because often times they are just the “knee-jerk” reactions of the market. It’s like when someone is doing something really strange, but when asked about it, he or she simply replies, “Sorry, it’s just a reflex.” When plotting support and resistance, you don’t want the reflexes of the market. You only want to plot its intentional movements. Looking at the line chart, you want to plot your support and resistance lines around areas where you can see the price forming several peaks or valleys. Other interesting tidbits about forex support and resistance: When the price passes through resistance, that resistance could potentially become support. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding. With a little practice, you’ll be able to spot potential forex support and resistance areas easily. In the next lesson, we’ll teach you how to trade diagonal support and resistance lines, otherwise known as forex trend lines. How To Draw Support and Resistance Levels Like A Professional. In my daily Forex commentary each day, I draw in the key levels of support and resistance that I feel are the most significant in the current market environment. It’s something that I’ve done for so long it really only takes me a few minutes to do now, it really is a very logical and simple task for me and it can be for you too. Many traders make the process of drawing support and resistance levels a lot more difficult than it needs to be. After you have a general idea of how I draw my support and resistance levels, you should have no problem using that knowledge as a guideline to draw the levels yourself. We get tons of emails each week from traders asking how to properly draw support and resistance levels on their charts.

Also, we get emails with chart attachments from traders who are clearly drawing far too many levels on the charts, thus complicating the process of price action trading and confusing themselves as well. Today’s lesson is going to be a tutorial of how I draw my levels in the market. Basically, I’m going to take you guys on a ride through my brain (scary I know) as I decide where to draw support and resistance levels on some real-time daily charts. You can use this lesson as a reference until you feel comfortable enough drawing the levels on your own. Also, it will help you to make your own commentary each day of your favorite markets; writing down your analysis rather than keeping it all in your head is a good way to stay on track and make sure you have a clear plan for the week and day ahead. To get started, let’s clear up a few common myths about drawing support and resistance levels… Common myths about drawing support and resistance levels: Myth 1: You should draw every level you can find on your charts – Many traders fall into this trap, they end up taking an hour to draw on every little level they can find. What they end up with is a really messy chart that basically does more harm than good. You need to learn to draw only the significant levels on your charts, then you’ll have a useful framework to work from. Myth 2: Your SR (support and resistance) levels should always be drawn across the exact highs or lows of price bars – This is perhaps the biggest myth that traders have about drawing levels on their charts.

Often times, support and resistance are more “zones” than exact “levels”, sometimes you will have a key level that is indeed an exact level, but more often than not we are going to be drawing our support and resistance lines midway through bar tails or even through the body of a bar sometimes. Point being, you don’t always have to draw the level exactly through the high or low of the bar. Note: if you are totally new and confused by some of the lingo here, please take some time to go over this candlestick tutorial before moving on. Myth 3: You should go back really far in time with your levels – Unless you are a long-term buy-and-hold investor right now, you don’t need to go back more than about 8 months when drawing your levels. If you look at our free forex commentary you can see we really only focus on the last 3 to 6 months when drawing in the daily levels, and that goes for my own personal trading too. I am not sitting there trying to draw in levels from the last 5 years like some traders…you are wasting your time if you’re doing this. OK! Now that we’ve cleared up those common myths about drawing SR levels on your charts, let’s move on to some “meat”: How I draw support and resistance levels on my charts: Below are examples of how I would draw the relevant support and resistance levels on some of the major Forex pairs, Gold, Crude Oil and Dow Futures as they stand at the time of this writing. Above each chart is a brief explanation of why I drew the levels where I did. Example 1: EURUSD DAILY CHART. Here we are looking at the current euro dollar daily chart. You’ll note the red lines highlight the longer-term or “key” levels and the blue lines highlight the shorter-term or “near-term” levels. This is how all the examples will be in this lesson and hopefully it will make it easier for you to differentiate between what I often refer to as “key” levels from shorter-term levels that aren’t quite as significant. In this example, you can see this market is clearly in a trading range right now between about 1.3140-70 resistance and 1.2830 support.

Those are what I would call the “key levels” on this current daily EURUSD chart. Within the range, we have some shorter-term levels that are still significant albeit less so than the key levels just discussed. Of special note are the two shorter-term resistance levels marked on the chart below. You will see that the one near 1.3070 is hitting a bar high from October 5 th , but also it’s going through the bodies and middle of the tails of the bars from October 17 th – 23 rd . This brings up a good point…a support or resistance level can be significant even if it isn’t exactly touching bar highs and lows. This is also seen at the key resistance of the range, note how the line through 1.3140 is not touching the exact highs on September 14 th and 17 th at 1.3171…this brings up the point that sometimes support or resistance is more of a “zone” than a strict exact level. In this case the resistance of the current range is really a small zone of resistance from 1.3140 to about 1.3171 (more on support resistance “zones” soon). Also of note, there was an inside bar on October 18 th , and after the market broke down from that inside bar it tried to rotate back up to about where it broke down at, and this breakdown level acted as resistance and held the market off from advancing further, and then as we can see the market has since fallen away from that level. These are some of the more subtle things you need to learn about when drawing in your levels…especially shorter-term levels; that inside bar breakdown point held as a resistance, and often inside bar breakout points will act as support or resistance, even if it’s just for the short-term. Example 2: GBPUSD DAILY CHART. Here’s a good exercise for you to work on: When marking support and resistance levels on your charts, mark the longer-term “key” levels first and then draw the shorter-term levels. This will work to give you a framework for the current market conditions and gives your analysis some routine as well.

One of the things I often write about is support or resistance “zones”, as often a support or resistance is not really an exact level but more of a zone. In the example below, we can see a very good example of a resistance zone that occurs between about 1.6270 and 1.6310. “Key” support or resistance levels are generally levels that price rejected forcefully and that gave rise to a significant move up or down, or they can be levels that have contained or supported price many times. Whereas, shorter-term levels give rise to smaller movements and tend to break easier. We can see good examples of both in the GBPUSD daily chart below: Example 3: AUDUSD DAILY CHART. In this example we are looking at the AUDUSD daily chart and we can see currently the market is in a large trading range between about 1.0612 and 1.0175. We classify 1.0612 as “key resistance” since it has caused significant turning points in the market and held on the last two tests. Similarly, 1.0175 is “key support” because it has led to significant turning points in the market and held on about the last 4 tests. The shorter-term level through 1.0410 is clearly significant, but again it’s not “quite” as significant as the two levels just mentioned. As you can see, some of drawing in your levels and deciding which is more important than the other can be left up to your own interpretation, but at the same time you should have a logical line of reasoning such as “this level has held price more times”, or “that level created a larger move”, etc. Example 4: USDJPY DAILY CHART. In the USDJPY example below, we are looking at all “key levels” because I did not see any that I considered to be short-term levels. The reason being, every level I’ve drawn in has created a significant turning point. The USDJPY most recently has been breaking higher, and if the resistance near 80.37 gives way we will likely see another leg higher. Of special note in this chart are the bar tails or wicks.

Note how some of the levels are not drawn exactly at the bar highs or lows but rather through the middle portion of the tail. This is important, and it’s one of the myths I mentioned at the start of this lesson; you don’t always have to draw your SR levels exactly at a bar high or low. In fact, it’s more important to have a lot of tails touching a level than it is to have a level exactly at two or three bar highs or lows. An example of this is the level at 78.79 in the chart below; note how I drew it through as many bar tails (or wicks) that I could, rather than moving it further up and just hitting the exact highs of a couple bars. Drawing your levels in this manner gives you a better reference point to look for signals from since you are getting closer to the mean or average turning point price in the market, so it’s basically a higher-probability level than a level that’s further out but exactly at a bar high or low. That’s not to say you will never draw SR levels at exact highs or lows, because you will, a lot, but it just means you don’t always have to draw them that way and won’t always want to. Example 5: NZDUSD DAILY CHART. In the NZDUSD chart below we want to take note of what I refer to as a “value area”. Now, what I mean by “value area” is basically just an area where it’s obvious that price “likes” to be. This is essentially just another word for consolidation, since an area of consolidation on a chart is essentially where a market has found “fair value”. These value areas typically act as support or resistance zones, and this means when price retraces back to them you can watch for price action trading strategies forming at them. You will also sometimes have existing support or resistance levels that basically run right through the center of a value area, showing about the middle of the value area, and we can see this clearly by the blue line in the chart below. In this specific NZDUSD example that blue value line would be a good support to watch for buy signals if price rotates lower soon. Example 6: USDCAD DAILY CHART. The USDCAD daily chart below shows us a good example of the “value” concept that I discussed in the last example. Note how price formed that area of consolidation or “value” marked on the chart below, and then later price retraced back up to it and found resistance exactly at the center of the value near 0.9883 on October 3rd. Then, after price finally broke back above that value level it formed a price action setup after it retraced back down to it, as we can see an inside pin bar combo setup formed showing rejection of that same level. So, here’s a very simple strategy for you; wait for a key level to break, then wait for price to retrace back to it and look for a price action setup entry trigger to form near the breakout level in the direction of the initial breakout. Example 7: EURJPY DAILY CHART. We can see in the EURJPY chart below that it’s been in an uptrend since about the end of July.

This uptrend has had some pretty large counter-trend retraces, which of course we need to mark with levels. We can see in the chart below the support levels and zones left behind by the different points in the market were the retrace ended and the uptrend resumed. Also, in a trending market like this, we can watch the previous swing points for price action signals as the market retraces back to them. For example, in an uptrend we can look for price action entries at the previous resistance swing points in the market which turn into support after price breaks up past them. We can see a clear example of this in the chart below with the recent pin bar trading strategy that formed at the shorter-term support through 102.50 area, note that this level was previous resistance. Example 8: XAUUSD DAILY CHART. In the Gold chart below, you can see I’ve gone back about 8 months in drawing in my long-term levels. This is about the farthest back I typically go when drawing in my levels on the daily charts. Again, longer-term “key levels” are those levels that clearly caused a significant change of direction in price and or held strong on multiple tests across time. Shorter-term levels are those that caused less significant price direction changes and may be “newer” levels. You don’t have to get carried away drawing in too many of the shorter-term levels though, just use common sense and decide which are the most obvious and draw those in. If you put too many support and resistance levels on your charts you’ll end up with a messy chart that just confuses you and might even cause you not to trade because you think there are too many levels for the market to have to move through. This brings me to a very important point you should remember: In an up-trending market, resistance levels will often break, and in a down-trending market support levels will often break.

I say that because I get a lot of emails from traders telling me they can’t get a proper 1:2 or more risk reward ratio because there are too many support or resistance levels in the way. Well, you have to look at the market context that your trade setup has formed in and use some common sense and discretion…not every little level you find is significant. Example 9: DJ30 DAILY CHART. In the Dow Jones futures chart below, we can see the current picture of key levels that are relevant for this market. Of special note, we can see how consistently these key levels hold as price retraces back to them. Knowing that price often bounces or repels from key levels is a very valuable piece of information. Indeed, a big portion of my trading theory revolves around waiting patiently for an obvious price action setup to form at a key chart level as the market retraces back to it. If you observe this chart for a few minutes, you’ll begin to see how accurate these levels are in rejecting, it really is uncanny. Example 10: WTI DAILY CHART. In the example below, we are looking at the current Crude Oil chart. This chart shows us a very important lesson. Note the pin bar marked on the chart below, it was an obvious pin bar that showed forceful rejection of a key resistance level, and then the market chopped around about 6 days before finally moving lower. The most obvious stop loss placement on that pin bar would have been just above its high which was also the key resistance through $93.65 area. If you enter an obvious price action setup like that and you’ve placed your stop loss at a logical spot in-line with the existing market structure, there’s no reason to panic if the market moves against you and almost stops you out. This exact scenario was very likely in this Crude oil pin bar setup, and I know some traders who panicked when price moved against them. Had they just stayed in the market, their initial stops just above the key resistance would not have been hit and they would have made a killing.

Lesson: trust your stops if you’ve placed them beyond a key support or resistance level or in another logical place. Conclusion: I hope you now have a better idea of how I draw support and resistance levels on my charts and why I draw them where I do. I suggest you try drawing the relevant levels on your charts now according to what you’ve learned in today’s lesson. Also, follow my daily Forex commentary for a good daily example of how I draw the levels on a major market each day. Determining where to draw your support and resistance levels is really not as difficult as many traders make it out to be. When in doubt, slow down and take a step back, ask yourself if a level your about to put on your chart makes sense and why. If it makes logical sense you should be able to easily explain why to someone who has no trading experience. For example, you might say “This level is important because it clearly caused price to make a significant change of direction recentl



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