MT4 support resistance indicator helps traders in everyday trading. It helps in reducing the chances of risk. Support and resistance indicator for MT4 will assist in finding the correct points of entry to the market. It identifies the levels the price has interacted with. After the identification, it draws them as rectangular areas on the MT4 chart. It marks support levels in blue and resistance levels in orange.
Here we need to understand what support and resistance levels are. Support is a level that acts as a hindrance in the downward movement of the price whereas resistance tries to work as a hindrance in price growth. Let’s review the working of MT4 support resistance indicator in detail.
What Are The Benefits Of Support and Resistance Indicator?
Support and resistance indicator is of great help in trading as it finds out the closest support and resistance levels itself. The indicator can work efficiently on all timeframes. It can be used to analyze support and resistance levels on all markets. You can set its settings according to your requirements. It doesn’t redraw on the MT4 chart.
When you are using the indicator it is wise to not expect too much from it as it cannot issue warnings. You will have to be careful while using the support and resistance indicator.
Is Support And Resistance Indicator Useful For You?
Support and resistance indicator is very useful as it provide price references that will help you in trading. It will be compatible with whatever trading system you are using. For a trader, he must understand how support and resistance levels are drawn. But don’t worry if you find this task difficult the support and resistance indicator will help you in this regard. Even if you are a skilled trader who can easily draw support and resistance levels, by using this indicator you will save a lot of your precious time.
How Does The Support And Resistance Indicator Work?
The support and resistance indicator works based on a fractal indicator that is built into the MT4 platform. The indicator locates the levels where fractals are formed recently. Then it colours the levels in two different shades, support levels are coloured blue and resistance levels are coloured orange.
The figure it forms represents how many fractals are used to build it. If the figure is high it means the level is strong and if the figure is low it means the level is weak.
Basic Knowledge of Support and Resistance Settings:
Support and resistance indicator has very simple and easy settings which you can understand without any difficulty. You can further change these settings according to your requirements as they are quite flexible.
- You can set the level width from 1 to 10. 1 will show narrow zones whereas 10 will show wide zones.
- If you want your levels to be placed tightly then choose more frequency but if you want to see the only significant levels then keep the frequency less.
- From sensitivity, you can assess how quickly the level will be considered broken. You can switch the sensitivity level between high and low.
- If you keep the display period short 300 candlesticks will be analyzed whereas if you keep the display period long 1200 candlesticks will be analyzed.
- You can set the minimum number of fractals that are required to form a level.
- By setting the projection length you will customize that for how long in the future the levels will be shown.
How to Setup MT4 Support Resistance Indicator:
It’s a very easy task to set up MT4 support resistance indicator. If you are using Windows then this step to step guide will help in setting up your MT4 support resistance indicator.
- Open your Metatrader.
- From the file menu open the folder that has the platform data.
- Once you have opened the folder, open the MQL4/Indicators folder.
- From the downloaded archive insert the support and resistance file that has .ex4 at the end.
- Now restart MT4 platform or refresh the navigator window.
Now you are all set to use your MT4 support resistance indicator effectively and have some great help in trading. Save your time by using it and excel your business.