Support and Resistance Technical Analysis MT5 Indicator
Support and Resistance is one of vastly used concepts in FX. Most traders draw horizontal lines to show these areas.
There is also an indicator used to draw these levels automatically & indicate the resistance & support levels.
When it comes to these levels trading price can either bounce off these zones or break through these zones.
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 & 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 to move in that specific direction until such a time when it gets to the next support or resistance area.
The more often a support or resistance level is tested or is touched by price and bounces, the more major that particular level becomes.
Technical Analysis and How to Generate Signals
These levels are calculated a trend lines method.
Upward Trend
In an upward trend the resistance & support will generally head upwards
Upward Trend
Downwards Trend
In a downward trend the resistance & support will generally head downward
Down-ward Trend
