best support and resistance indicator: What Is the Best Indicator for Support and Resistance for MT4? Get It for Free Forex Sentiment Board

best support and resistance indicator: What Is the Best Indicator for Support and Resistance for MT4? Get It for Free Forex Sentiment Board

initial investment
fibonacci extensions

And if you’re a novice, such a tool could speed up your learning process. In a downtrend, a trendline is drawn from one particular high, connecting subsequent lower highs and projecting the line into the future. Moving averages, Fibonacci retracements and extensions can be extrapolated as support and resistance indicators.

The trick is to find the hidden/true stochastic support level and see how it tallies with the support level you found . Below is an example of how this looks like and how it worked out perfectly. We can see the 50% FIbonacci retracement lining up nicely with our support level. I highly recommend reading our guide on how to draw Fibonacci retracements correctly to better understand and utilize this magical tool. Here’s an image when we toggle the strength such that we filter out the swing high/lows which are not strong.

support or resistance

There are ascending/descending lines such as diagonal lines because the subjective nature of taking the proper levels is too subjective. If you get one point off by 1 pip, the line goes way off tangent. Let us first properly define what Support and Resistance levels are before moving further . There are countless ways to analyze the Forex market and make predictions. Moving average Moving average serves as the best indicator of trend.

Explaining Support

Support is any price point which prevents the price from falling further. And depending on whether it renders a temporary pause or a permanent reversal, the support defines its strength. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.

The basic strategy in the market is to buy an asset when prices are at the support level and to sell when prices are at the resistance level. Firstly, you can greatly improve the accuracy and profitability of your support and resistance trading strategy by using Fibonacci. Now, this is not some “demand/supply zone” indicator which many people are familiar with, it’swaybetter than that.


And since the Fractal indicator works on any timeframe, the FXSSI support and resistance indicator works on any timeframe as well. Munehisa Homma, a Japanese rice trader of financial instruments, developed candlestick charts in the 18th century. A support or resistance, upon breakthrough, converts itself to the other. So, don’t initiate a trade as soon as the support or resistance breaks. Similar to the support zone, the resistance zone identifies the cluster of resistance points amid fluctuations and groups it into an area.

Not only can you determine the most relevant support and resistance levels, but you can also monitor the development of these levels. The benefit of this is that you can predict high probability levels, as the price is likely to keep testing such levels until it finally breaks through it. The number of interactions is displayed on the left side of the drawn support or resistance level.

Increasing the strength of the support and resistance indicator

The bullion metal, at last, plunged from the zone which only validated the resistance. In practice, zones are more potent than a point as they are difficult to break through. If the line connects more than 3 reversal points, then the line becomes a valid historical support.

In addition, useful adjustments and customizations to the indicator can make it easily fit your trading style. Most of the other support and resistance indicators out there are limited to drawing the previous levels on your chart. Some go as far as projecting the lines for future trades, but they don’t go much further. This is the best support and resistance indicator a trader can ask for.

How we define major swing highs here is based on the parameter we can adjust called “Swing sensitivity“. The higher this value, the more significant our swing highs are. Today we will be covering a few things, in particular, to prepare you to not only use this support and resistance indicator but also to make good money trading it. For instance, you can edit the width of the levels to help you catch a wider price range. Or you can reduce the width to make it more sensitive to breakouts. You can also customize the minimum number of touches a level must have before it is displayed on your chart.

In the above hourly chart of USD/JPY, support is the point which acts as demand zone and resumes the bullish trend. The pair bounces off from each supportive point and creates a new high which validates the support. MT4 Stochastic Indicator – finding the hidden resistance level. You are able to greatly improve your accuracy when trading with Support and Resistance by combining it together with our proprietary MT4 True Stochastic Indicator.

This can be achieved by combining support and resistance levels with other technical analysis indicators. To start with, the ADX indicator can be used to confirm that a market is indeed range-bound when the reading is below 25. The FXSSI support and resistance indicator automatically identifies relevant support and resistance levels on your forex chart, regardless of the timeframe you’re trading. It makes use of orange lines to depict resistance levels, while blue lines display support levels. However, just knowing that prices respect support and resistance levels is not enough to help traders make their trades.

That when combined with Support & Resistance, proves to be a truly profitably trading strategy. This won’t make the indicator trade for you – it’s there because there’s some licensing protection on this indicator. Without toggle strength, we can see that there are some lines which are not so strong.


Remember, as I mentioned earlier, the Support is always below current price. Watch me as I explain how to use this powerful tool in my own trading. Understanding Swing High and Swing Low AreasIdentifying swing high and swing low areas on the indicator.

Instead, one has to learn how to identify relevant support and resistance levels in forex because not all of them are important. After identifying them, you also need to know how to draw them on your charts. If you have been trading the forex market for a while, you might have noticed that the prices often move between supports and resistances. And if you look closely, you might also find that the previous support and resistance levels are still relevant in the charts today. This just goes to show how important these levels are in forex.

Then there are horizontal support/resistance 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 lines/areas. Finally, a multi-timeframe dynamic support and resistance indicator that helps you automatically identify strong zones to buy and sell from. Oreoluwa Fakolujo Forex Trader & Writer At first, this might take some getting used to. And for expert forex traders, constantly drawing these levels as they develop can be monotonous and sometimes stressful. But thankfully, some tools help make the identification and drawing of these levels a lot easier for traders of all skill levels.

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If you are an intraday trader, these values are of pivotal importance to you. You can use correlation between forex pairs to greatly improve your trading accuracy, especially with support and resistance. What the indicator does is it takes these swing highs/lows and plots a line to detect whether it coincides with other swing highs/lows. The InitialPips value is the ‘buffer’ it uses to detect whether another swing high/low is near it.

A Must-ReadeBook for Traders

They push the price down, keeping the bearish sentiment afloat. In the above chart, the 100-SMA supports price action and holds the trend move. Or you can say, the moving average literally drives the price here.

FXSSI Support and Resistance Indicator

Add that to customizable options, and you’ve got yourself the complete support and resistance indicator package. Both these points were not significant points based on previous price action. Get to know more about Fibonacci number application in Elliott wave here.

He started off blowing up 7 (or more.. lost count) accounts amounting to more than 500k, tested over 30 Expert Advisors to no success and spent over 10k on stupid useless courses. I recommend you read our super in-depth article on ourcandlestick pattern indicatoralong with what goes into calculating the perfect bullish and bearish reversal patterns. Notice how there are many more lines which have just 1 swing high/low on it. There are a few settings that you should understand about this indicator to better help you use it effectively.