Our Indicator “Support and Resistance” offers an insight into the structure of any given Instrument applied to. Understanding Support and Resistance is essential for using this Indicator. If you are familiar with the concept, then you will most likely find this indicator useful in your trading. If you are unfamiliar with the concept and are interested then continue reading a “Brief Concept of Support and Resistance” at the end of the description, where we will provide some informational Links. This description will provide a High Level description of how our Indicator identifies and visualizes Support and Resistance, followed by how to use the Indicator in your trading. At the end we would like to introduce our team and experience.
High Level Description of “Support and Resistance”: Our indicator searches for prices where the current Instrument has experienced a significant pivot point in the recent relative past. Our indicator identifies relevant Highs and Lows, and clusters theses pivots into levels.
Visualization: What do the Lines mean: Our Indicator visualizes Support and Resistance Levels with a dash Line. All the Support and Resistance displayed is a snapshot of the current Levels Identified. As price evolves the Support and Resistance levels evolve.
Important: All Zones will REPAINTED. As previously mentioned, all levels are a snapshot of the current state. To view a history of Support and Resistance development please use the Replay function.
How to use it: Approaching a Support and Resistance level: When price is approaching a Support/Resistance Level, look for reversal patterns you are familiar with. When price has penetrated/broke a Support/Resistance Level significantly, look for a retest and reversal structure at the level. It is important that you have a tested method behind your entry and exit strategy. Please note, that the indicator itself just presents price areas where there is a potential for a price reversal, and that these levels should not be traded blindly.
Time frame: This indicator is programmed to be used on all Timeframes.
Instruments: This indicator aims to visualize areas of where Market price has the potential to reversal, hence this is a mean reverting Indicator. Taking this statement to account, it is recommended to apply this Indicator to Instruments with a mean reverting character. Examples of mean reverting markets could be for example … ...all FOREX instruments, as FOREX is considered a mean reverting Market. ...an instrument that is in a consolidation, or which you are expecting to enter a period of consolidation.
Indicator settings and configuration: Please view “Tooltips” in the configuration for detailed setting information.
Our Team: We are a team of 3 Traders with a combined experience of 40 years. We are using our experiences from the market to create Indicators to Visualize the most relevant Patterns to us in our trading today. Our goal is to reconstruct these patterns to match our understanding of the market and to simplify the process of creating reproducible trading Strategies.
Hi, I've purchased the support and resistance level indicator. What are the best settings?
PatternAlpha
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@antvereen, congratulations! The settings is based on your trading strategy. For me personally, I use the settings... level visibility: Only Major Levels level lookback: standard level clustering width factor: 0.5 level minimum touches: 1