MT4 Support Resistance Indicator
A trader's work can turn out to be full of risks and trouble. It is not easy to find an accurate point of entry to the market, and a trader needs to have a great amount of knowledge to perform the trade. To help reduce these risks, support and resistance comes in play for the trader. You may wonder what support and resistance actually is? Support is basically a level or zone which acts as an obstacle in front of the downward trend of the price. Just like that, resistance is that level of zone that works as an obstacle in front of the price growth. Using a free mt4 support resistance indicator for the popular MetaTrader 4 platform, an efficient way of discovering support and resistance levels/zones can be found.
How Does The Indicator Actually Work?
The indicator's work is based on the fractal indicator included with the MT4 platform. Bill Williams defined the fractal as a local extremum. The support and resistance indicator determines the levels or zones where multiple newly generated fractals are found automatically. It indicates that the level/zone is acting as a support/resistance zone.
Best strategies For Support and Resistance
Some must follow strategies for support and resistance is given as below:-
- The Reversal
When a trader needs to sell near resistance levels and buy near support levels, this is the most straightforward technique. The only down-side of this technique is that it will result in losses under volatile market conditions. As a result, you should probably avoid utilizing it when important news is being released.
- The Breakout
When the asset's price breaches the support level, this method calls for selling it and buying it when the price breaks the resistance level. This technique is logical to use during the commencement of active market sessions, when big news is expected, and when the price has been stuck in a narrow range for an extended period of time.
- The Breakout Test
This technique employs the "mirror" level principle, in which the resistance acts as support after the breakout, and the old support acts as resistance.
Which Strategy has the edge over others?
There is no "one size fits all" policy, when it comes to these strategies. The above-mentioned strategies are not right for everyone, and just like that, it is not wrong for everyone as well. They can turn out to be either profitable for you; on the other hand, they can occasionally provide false signals as well. Explore them and look for the best-suited one for you.
How to Set Up S&R Indicator in MT4?
You do not need to worry about the indicator's installation because it is simple, and anyone can do it. Here's a step-by-step guide for Windows users:
- Open MetaTrader.
- Using the File/Data Folder menu, open the platform data folder.
- Open the MQL4/Indicators folder in the folder.
- From the downloaded archive, insert the Support&Resistance.ex4 file.
- Restart the MetaTrader 4 platform (or refresh the Navigator window).