Support and Resistance MT4 Indicator Signals
Support & Resistance is one of vastly used concepts in Forex. Most traders draw horizontal lines to show these levels.
There is also an indicator used to plot these levels automatically & indicate the resistance and support levels.
When it comes to these levels price can either bounce off these levels or break these levels.
If a resistance level is broken price will move higher and the resistance level will turn to a support.
If a support level is broken price will move lower and this level will turn to a resistance.
Price where the majority of investors believe that the prices will move higher, while resistance levels indicate the price at which a majority of investors feel prices will move lower.
Once price has broken through a support or a resistance then it is likely that the price will continue moving in that particular direction until it gets to the next support or resistance area.
The more often a support or resistance level is tested or is touched by price & bounces, the more major that particular level becomes.
MetaTrader 4 Indicator and How to Generate Signals
These levels are calculated a trend lines method.
Upward Trend
In an upwards trend the resistance & support will generally head upwards
Up-ward Trend
Downward Trend
In a downward trend the resistance & support will generally head downward
Downward Trend
