We all know how important it is to identify Support and Resistance levels, and MetaTrader 4 doesn’t offer any feature to calculate them. Well, there is a solution for this! Support and Resistance Indicator for MT4 is able to calculate and draw on chart the levels of support and resistance for the current pair.
What is Support and Resistance Indicator for MT4
One of the first concepts you learn when you start trading, whether it is Forex, Stocks, Indexes or other Assets, is Support and Resistance.
There can be slightly different definitions for them, however, the mostly mean the same.
“Support and Resistance are levels where the price tend to bounce“.
They are kind of price barriers hard to break.
Support and Resistance can be easily spotted by the human eye.
You need to focus on the close prices and see where they stop and consolidate or bounce.
Calculate these levels on a mathematical way is all another story.
The Support and Resistance Indicator for MT4 uses an algorithm to find these levels.
The indicator scans a range of candles and identifies where the price is bouncing or stagnating.
It then calculates the median price and draws an horizontal line to easily show on chart.
How to use Support and Resistance?
As mentioned before, Support and Resistance are levels where the price consolidates or bounces.
Considering these levels you can use the information to your advantage.
Some of the most popular options to use Support and Resistance are:
- Stop Loss and Take Profit, Support and Resistance can in fact be used as Stop Loss and Take Profit Levels
- Trend Reversal, in a condition of ranging market or when there is a high probability of trend reversal you can use the Support or Resistance level as confirmation of the reversal
- Trend Continuation, if the price pushes and breaks a Support or Resistance level in trending condition then it is likely to continue the trend
Some of the unique features of the Support and Resistance Indicator for MT4 are.
Configuration of the Sensitivity
You can set a different sensitivity setting to configure the indicator to show you more or less levels.
Show Support and Resistance for a different Timeframe
This is very useful to visualize Support and Resistance Levels for different timeframes.
For Example if you are on the M15 chart for some scalping trade. In case you want to see the Support and Resistance levels for the Daily chart you can do it with Support and Resistance Indicator for MT4.
Other than showing on chart what is the distance from the above and below levels, you can set a minimum distance from the closest level to consider a trade safe. You can also configure the indicator to send you notification in case you enter in the Danger Zone (or viceversa)
Integration with your Expert Advisor
If you are a coder and want to integrate the indicator in your Expert Advisor please contact us so I can provide you with the code to integrate the indicator in your Robot.
You can try the indicator for free on AUDNZD or buy the full version following the link below.
Support and Resistance Indicator for MT4 is a very useful and rare indicator that can really help you trading, never underestimate the levels of Support and Resistance because the market in the majority of the cases respects them.