The indicator plots support and resistance levels on the chart, with blue color for base level, red for resistance and green for support. Green arrows are displayed when a buy signal is generated, and red arrows when a sell signal is generated.
The market entry strategy is based on breaking support and resistance levels. When a buy signal is generated and no position is opened, a buy position is opened with a take profit and stop loss level calculated according to the parameters set by the user. Similarly, when a sell signal is generated and no position is opened, a sell position is opened with the corresponding take profit and stop loss levels.
The indicator also displays a “STOP” indicator when a position exit signal is generated, indicating to the trader that it is time to close the current position.
This indicator is a powerful tool for traders who want to exploit support and resistance levels to improve their trading decisions. It can be used in different financial markets and different time periods. Parameters such as average moving length, deviations and multiplier can be adjusted according to individual trader preferences.
Note: This indicator only provides potential signals and does not guarantee positive results with every trade. It is recommended to use this indicator in combination with other technical analysis and risk management tools to make informed decisions when trading.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.