The best indicator of support and resistance levels for MT4

Different indicators are not uncommon in trading. There are large analytical Internet resources with graphs, news and a lot of built-in ideas and strategies. In addition, the MetaTrader4 platform and its older version are very popular. In this article, we will talk about how to choose the indicator of support and resistance levels for MT4, what they are and whether they should be used at all.

Arguments for

Like any other, the indicator of support and resistance levels for MT4 can save time spent on price analysis. In addition, the set addition will give the trader more confidence in their actions and, possibly, even increase the number of correct entries in the transaction. Most likely, this will become a reality if the indicator of support and resistance levels for MT4 is used in conjunction with independent technical analysis and complements it.

Anyway, such additions can help to see some unobtrusive changes on the "bare" schedule and react to them in time or at least start to act more cautiously, for example, to reduce the amount of the position to be opened if there are doubts about the direction of the price.

Arguments against

Trading - the sphere is very subjective, and all the rules of technical analysis are only recommendatory. The market is moved by its other participants, not the formulas and graphics that you see on the screen. Accordingly, any indicator of horizontal support and resistance levels for MT4 is written by the same traders. It may not take into account any points or prescribed only those conditions that the creator of the addendum considered necessary and convenient primarily for himself.

Perhaps the risk associated with errors and false inputs to the transaction will increase, and the line drawn by the automatic indicator of support and resistance levels is simply a zone of a small price retracement. Potential problems with indicators are very many, they will be individual in each individual case and require attention. For example, an incorrectly specified parameter can turn a useful addition into a tool that draws chaotic lines in a terminal window or simply disables all display settings, including color, graphics style and fonts. There is nothing critical in this, but you will have to spend time to bring the MT4 window into working view.

The best indicator of support and resistance levels

This is probably a very popular search query. However, any automatic indicator of support and resistance levels can not be better or worse, it's just a formula and arguments embedded in the program, as mentioned above. Many traders drive themselves into a trap, using dozens of different indicators, which often only confuses them and confuses them, and ultimately leads to loss of deposit and disenchantment.

Of course, exceptions are possible, because there are many trading systems-robots, which are based on automation. However, they are used by real professionals who understand how indicators work, they know what support and resistance are and, as a rule, traders write robots for themselves.

If you go back to what indicator of support and resistance levels for MT4 is chosen, you should first look at the classic moving average, the Fibonacci lines and many other relatively popular things.

Self-determination of support and resistance levels

In fact, there is nothing complicated, and this will be the most effective method. An important aspect will be that which reflects support and resistance. They interpret important market information.

Support reflects current demand. This is the line below. In order to find it, you need to connect the price minima on the chart. The value of an asset or a currency pair will ricochet from this line, trying unsuccessfully to break it and go down. This behavior reflects the predominance of bulls, that is, of traders playing on the rise, and in addition, this situation means that the demand is higher than the offer.

The resistance line is the opposite of support. She does not let the price exceed a certain level, and she, in turn, is forced each time, as it were, to jump away from it. To find support, you need to connect the top highs, that is, the top of the value of your asset. The situation when the price can not break such a line means that the offer has reached a certain maximum, and further the price decline is possible. It should be noted that the higher the time period on the graph (timeframe), the stronger the levels will be. They will be applicable at smaller intervals and will be the main ones.

It is important to go back to the breakdown levels. As a rule, if the price stops bouncing off the line and crosses it swiftly, then it will rush to the next zone, and the current trend will be confirmed. The above concept is simplified as much as possible, therefore it is recommended to study more material on this topic independently.

Why it is necessary

Having learned to determine the levels yourself, you can save yourself and your schedule from unnecessary indicators, or at least use them not thoughtlessly, but to understand the principle of work and filter false information more effectively. In addition, knowledge of the key principles of building the levels will help advance in further training in technical analysis and help in developing their own trading strategies.

Helpful Tips

If you still decided that you need an indicator of support and resistance levels for MT4, it is recommended to look for it only on authoritative resources related to trading. Also, you should avoid various single-page sites with questionable signals, paid add-ons and other potential fraud.

Before installation, it is important to carefully read the description, operating principles and settings, as well as feedback from other traders about the indicator that you are downloading. It will be difficult to choose because of the large number of different additions. Therefore, you should also pay attention to the number of downloads and specific tasks of the indicator, some of them have a lot of third-party, but pleasant functions, for example, signal about the level breakdown.