In this post, you can download one of the best Forex indicators specialized in showing Forex support and resistance.
Nothing to worry about If you do not know what support and resistance is in Forex. We explain briefly support and resistance in Forex in an easy way.
Features of Forex Support and Resistance Indicator
As you can watch in the tutorial film we have prepared for you, this is one of the best indicators for showing support and resistance levels.
Before starting the lesson, take a look at the following tutorial:
As you saw in the film, configuring the settings in the indicator is pretty easy.
Amazing Features of the Indicator
⦁ capability to activate the notification or so-called alert
⦁ possibility to enable or disable showing pivots
⦁ Ability to enable or disable the target based on the pivot
⦁ Ability to activate or deactivate lines based on Fibonacci levels in three separate sections
⦁ Ability to enable or disable the standard Pivot ((very suitable for displaying Forex support and resistance))
⦁ Ability to list each of the above sections separately.
⦁ Ability to change the color of each section based on your preference to be shown on the chart
Download Forex Support and Resistance Indicator
To download the Forex Indicator of Support and Resistance for MetaTrader 4, you can proceed from the box below:
please be noted that this indicator is only for MetaTrader 4 and the MetaTrader version 5 will also be available for you in this post as soon as it is ready.
What is Forex Support and Resistance?
In order to explain to you the complete and accurate concept of support and resistance in Forex, we need to talk a little bit first of all about the concept of supply and demand.
The concept of supply and demand
The simplest concept of supply and demand is that price action in the market is based on supply and demand.
If demand exceeds supply, buyers will enter the market and admit the higher price and hence price will go up. If supply exceeds demand, sellers will sell at a lower price.
What are the support and resistance levels in Forex?
Support is a price range where a downtrend is expected to stop due to the increased demand at that level.
As prices fall, the demand to buy increases, and thus forms the support level.
Also, as prices rise, resistance zones are created due to high amount of selling.
By spotting support or resistance levels or ranges, we can obtain valuable enter and exit points for trades.
the price will act in one of the two following ways when it reaches the levels:
⦁ reversing and moving away from the support and resistance range of breakout
⦁ passing through it
Most trades are based on the belief that support and resistance levels will hold.
Traders can enter the market according to the break or reversing of the prices. If the range is broken, they can leave the market with a small loss. and if the price stopped in the range and started moving in the opposite direction they can keep their trades open. In such occasions the price movement will be significant.
In another post, we have fully talked about the concepts of supply and demand and support and resistance. We suggest that you study the following post, along with the video examples.
Price Ranges and their importance based on Support and Resistance Levels
Since this post is not an educational post about support and resistance and assuming that you are fully familiar with support and resistance, I do not intend to prolong this discussion but since the price ranges are plotted based on the Forex Support and Resistance Indicator They can be very important. I thought it is necessary to mention about them a few lines.
The importance of the price ranges that we plot with the indicator of support and resistance (or maybe manually on the chart) is that they practically treat support level as a price low and treat the resistance level as a price high.
Most of the time the market oscillates between this high and low. it cannot typically move in one direction or exit the trend and form a new trend or react to the already formed trend.
What Forex traders are looking for is to use the Forex Support and Resistance Indicator to spot these areas as the low and high to ride the movements of price between them.
How do professional traders use Forex support and resistance?
Professional traders use support and resistance levels in order to find the best enter point possible for their trades. Which means, they try to determine the point that is not exactly on these surfaces.
They also use them to spot the best exit point, which is usually both for taking profit and stopping losses based on these lines.
They consider a few pips lower or higher depending on their tp or sl.
In fact, if they have a buy position in the Forex market, they use the Forex Support and Resistance Indicator to set their tp a few pips left to the resistance line and their stop loss is a few pips below the support line.
And if they have a sell position, they place the stop loss a few pips above the resistance level and also place the tp a few pips left to the support line.
We use R as Resistance in the support and resistance indicator.
We use S as support level in the support and resistance indicator.
There is a lot to learn as to support and resistance, and it is enough to Search the phrase “support and resistance” in the search section of our site and you will surely find interesting articles.
Support and resistance are widely used in all Forex strategies. they are an integral part of Forex strategies. But we can say that the it is mostly used in the price action strategy.
And at the end, one question:
Is there really A Best Forex indicator which can properly measure the levels of support and resistance in Forex?
Is there a way to find the best points according to the concept of supply and demand?
We have to say a big yes. this indicator, if not the best Forex indicator, but we can declare it as one of the best Forex indicators to show support and resistance levels in Forex. So enjoy!
We hope you find this post useful.