Support and Resistance MT4 Indicator Signals

Support and 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 and indicate the resistance and support zones.

Support Resistance Trading Indicator - Support and Resistance Levels MT4 Indicator

When it comes to these levels price can either bounce off these levels or break these levels.

If a resistance zone is broken price will move higher & 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 heading in that particular direction until it reaches the next support or resistance zone.

The more often a support or resistance level is tested or is touched by price & bounces, the more major that particular level becomes.