Automatic construction of support and resistance
This script is designed to build support and resistance lines; after entering the appropriate settings, it builds several levels on the chart of a currency pair.
Which allow you to quite accurately determine the minimum and maximum price values depending on the time interval.
The constructed lines are more reminiscent of price levels than support and resistance lines, so working with them has some distinctive features.
Here you will not see the classic price channel, but only levels for different time frames.
This is more of an analytical tool than a means of searching for entry signals, since the script does not give clear signals and does not highlight entry points.
The indicator is well suited for searching for points for placing pending orders, which will be triggered when a certain level is broken.
After launching it, you independently choose at what distance from the current value you should place a new order.
The indicator of support and resistance levels is intended for use on short and medium time frames, the recommended trading time interval is 5 minutes.
The work of the script is based on several rather complex Forex analysis indicators, which independently analyze the historical situation on the market and, based on it, find the necessary points.
For ease of use, there is an advanced signal system, thanks to which you will always know when the market price of a currency pair is approaching the trigger point. In this case, either a simple sound signal can be given on the terminal itself, or a message can be sent to the specified email address.
Setting up the support and resistance indicator
Sound – enable or disable sound notification.
Alert – sets the value of the points at which the trigger occurs, indicated in pips.
EmailON – is responsible for entering an email notification to the email address you specified; verification is carried out through the test parameter.
PopupON – enabling the determination of the distance to the nearest price level allows you to track market dynamics.
TrendLine – turns on additional levels on the chart, thereby showing support and resistance lines on several time frames at once.
Trading strategy.
The resulting lines can be used both as guidelines when searching for market entry points and when placing stop orders.
The strategy itself is in no way different from similar ones that are based on trading in a channel; examples of such strategies can be found on the page - http://time-forex.com/strategy