The Support and Resistance Zones & Trend Lines is a basic technical analysis indicator developed for MT4 platforms. This indicator works great for beginner-level traders who struggle to draw the daily S/R and trend lines manually. Besides, an indicator takes care of determining the key price levels means you get more room to focus on other technical parts of the chart.
This indicator plots horizontal support and resistance levels of the price and works well even when applied on multi-timeframe charts. Moreover, it also plots trendlines based on the swing highs and lows of the past price movements.
Support and Resistance Zones & Trend Lines Overview
Once you install the Support and Resistance Zones & Trend Lines indicator on your MT4 platform, the trading chart will appear like the following image:
This indicator offers a simple and clear demonstration of the key event areas of the price. On top of that, you can still add one or two moving averages along with its S/R levels for building a trading strategy.
Support and Resistance Zones & Trend Lines Explanation
Look for a rejection or reversal pattern of the price candle at the key event areas outlined by the indicator. It can be the horizontal levels or the trend lines that the price is failing to break and starts swinging in an opposite direction.
Besides, during a trend following move, the price may often treat the automatic trend lines as dynamic S/R levels. So, even if you miss a trade opportunity close to the horizontal levels, you can still encounter potential buy/sell signals at the trendline areas.
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Support and Resistance: Buy Conditions
- The price finds support at the horizontal levels
- The price rejects the trendline support and rebounds upwards
- SL below the nearest horizontal support
- Take profit when the price rejects a resistance level
Support and Resistance: Sell Conditions
- The price rejects the horizontal resistance and starts moving downwards
- The price treats the trendline as a dynamic resistance
- SL above the current horizontal resistance
- Take profit whenever the price rebounds from a support zone