Supports & Resistances
Support Reisistance is an indicator that draws and reads automatically support and resistance levels like trendlines and fibonacci retracements to identify the most likely areas where the market will bounce.
The strenght: Reading on the code the supports and resistances areas permits to use the indicator in the Expert Advisor.
The risk: Too many drawn lines on chart could confuse the manual trader but it is possible to choose what lines to draw and what not..
The performance: The multiple types of supports and resistances, calculated on the current timeframe on higher ones, let traders know with high probabilities which are the best price support and resistances areas.
The Indicator runs in all Brokers using Metatrader 4 platform and can be used in an Expert Advisor or as a support of manual trading.
This indicator is composed by the OnChart and OnWindow parts:
- OnChart: Draws on chart the requested support and resistance lines:
- Orizontal Levels
- Fibonacci Retracements
- Pivot Points
- What are the best Support and best Resistance Prices
- The number of SR that pass through the actual price area
- The number of resistances that pass above the price and the number of supports below the current price.
- A comparison between the strength of the support areas and the resistance areas.
The input parameters:
- Indicator Timeframe: (1440: Daily) It's the timeframe where the indicator is calculated. It can be equal or greater than the current chart one.
- Backward Periods Considered: (500) The number of backward candles (from the last one) that indicator will consider to calculate the supports and resistances.
- Minimum/Maximum Around Candles: (100) A maximum/minimum, to be considered, has to be the absolute high/low of this number of candles.
- Width of each of 31 price Areas (in AvgRanges): (1) For example, if this parameter is set equal to 1, each area will be as large as the average range of the last 100 current timeframe symbol's candles. The amplitude of each price area is a multiple of the average range of the symbol. 1 area contains the current price, 15 areas are above the price (resistance areas) and 15 areas are below the price (support areas). The indicators have 31 price areas to check where supports and resistance pass through.
- Moving Averages calculation: (0|1) If true, the indicator will calculate moving averages On Window indicator.
- Trendlines calculation: (0|1) If true, the indicator will calculate them On Window
- Orizontal Levels calculation: (0|1) If true, the indicator will calculate them On Window
- Fibonacci Retracements calculation: (0|1) If true, the indicator will calculate them On Window
- Pivot Points calculation: (0|1) If true, the indicator will calculate them On Window
- Draw Area Strenght's Rectangles: (0|1) If true and if almost one Support and Resistance Calculation is true, the indicator will draw Area Strenght's Rectangles On Chart
- Draw Trendlines: (0|1) If true and if Trendlines calculation is true, the indicator will draw them On Chart
- Draw Orizontal Levels: (0|1) If true and if Orizontal Levels calculation is true, the indicator will draw them On Chart
- Draw Fibonacci Retracements: (0|1) If true and if Fibonacci Retracement calculation is true, the indicator will draw them On Chart
- Draw Pivot Points: (0|1) If true and if Pivot Points calculation is true, the indicator will draw them On Chart
- N°of Last Periods where Draw Objects: (1) The number of last backwards periods on which the indicator will draw the objects On Chart.
- Modality: (0-4) 5 modality to calculate the OnWindow indicator:
- (0) Best Support and Resistance Prices: The prices of the absolutes best support and best resistance.
- (1) Points of 14 15 16 Ranges: The number of SR that pass through these areas. 15 is the current price area, 14 is the nearest area below (support area) and 16 is the nearest area above the price area (resistance area)
- (2) Relative Strenght of 14 15 16 Ranges: The relative strenght of price area(15) and the 14(support) and 16(resistance) ones compared to others.
- (3) Support vs Resistance Relative Strenght: The number of the supports and of the resistances divided by the total number of levels.
- (4) Support vs Resistance Points: The number of the supports and the number of the resistances.
- Method: (0-2) there are 3 Method to calculate the selected Modality:
- (0) All 31 Areas: Takes in consideration all the 31 areas (1 price area, 15 support areas, 15 resistance areas).
- (1) Nearest 11 Areas: Takes in consideration the 11 areas nearest to the price (1 price area, 5 support areas, 5 resistance areas).
- (2) Nearest 5 Areas: Takes in consideration the 5 areas nearest to the price (1 price area, 2 support areas, 2 resistance areas).
Calling the indicator in the Expert Advisor:
Below 2 examples to call the indicator in the Expert Advisor by using iCustom function:
- Draw OnChart Trendlines and Orizontal Levels and read the best Support of all the 15 areas under the price:
double SR_support = iCustom (NULL, /*tradingSystemPeriod*/1440, "BacktestMarket_Indicators//Supports_Resistances", /*indicatorInputs*/ 1440,500,100,1, /*SRcalculation*/1,1,1,1,1, /*SRdraw*/ 0,1,1,0,0, 1, /*modality, method*/ 0,0, /*bufferN°*/ 0 , /*shift*/ 0);
- Draw OnChart Pivot Points and read the best Resistance of the nearest 2 areas above the price:
double SR_resistance = iCustom (NULL, /*tradingSystemPeriod*/1440, "BacktestMarket_Indicators//Supports_Resistances", /*indicatorInputs*/ 1440,500,100,1, /*SRcalculation*/1,1,1,1,1, /*SRdraw*/ 0,0,0,0,1, 1, /*modality, method*/ 0,2, /*bufferN°*/ 0 , /*shift*/ 0);
The product is composed by:
- Support Resistance Indicator .ex4 format to forecast most likely turning prices of the market
- A readme.txt file containig the set of information to start using the indicator step by step