Resistance And Support Indicator For MT5
Table Of Contents:
- Resistance And Support Indicator For MT5
- Trading ideas with the Resistance And Support Indicator For MT5
- Resistance And Support Indicator For MT5 - Buy Entries
- Resistance And Support Indicator For MT5 - Sell Entries
- Resistance And Support Indicator For MT5 - Conclusion
The Resistance And Support Indicator For MT5 is a very important indicator for reversal and for breakout traders. It draws support and resistance price levels on the chart. Support is drawn with violet color and resistance is drawn with green color. You can configure the indicator according to your needs.
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Alerts In Real-Time When Divergences Occur
The Resistance And Support Indicator For MT5 uses the fractals and colored dots marks to spot the reversal points. Support and resistance are the most important levels in the chart. The long trade gets executed when the price hits the major support and the short trades get triggered during the test of the resistance.
Some of the rookies often try to open the trade based on the moving average. Though the moving average provides excellent support and resistance, it has some lagging issues. The lagging issues need an experienced eye or else it becomes very tough for the retail traders to find the sweet spot in trading.
However, if you rely on the Resistance & Support indicator, you can easily forget about the leading and lagging issues. This indicator can draw the support and resistance level with simple purple and green line segments formed by a diamond-like structure. The bigger the line of the support or resistance, the better chance you have to earn money by trading that zone. But this zone needs to be used with an existing edge or else expecting a decent result from the market will be a big mistake.
Trading ideas with the Resistance And Support Indicator For MT5
Speaking of the support and resistance, we always encourage to focus on the hourly or the daily chart. Choosing the minute time frame to draw the manual supply and demand zone is not going to work. Minor levels of trading are considered a very risky approach.
For this reason, we need an existing trading method that can easily find good setups. And remember, the Resistance and Support indicator is not a trading strategy. Rather it is a helping tool that can filter the odd signals. Experienced traders can also locate the golden trade setup with the purple and green color diamond dots.
And if a skilled trader manages to integrate the news factors with the colored dots, they are bound the get the very best trade setups. As the investment industry is full of risky approach, a trader must follow a systematic way and use the indicator by knowing its true functions. Let’s see how we can take advantage of this classic indicator and earn a big amount of money.
Resistance And Support Indicator For MT5 - Buy Entries
It’s true, a valid support level is a prime location to execute long. But never except all the support zone will hold. You can improve your win rate by looking at the PA bar. If the rejection systematically takes place, the formation of the Japanese candlestick should represent a strong bullish candle.
The bullish candle can be formed with one simple bar or it can have multiple bars. As the bullish setup is identified, it’s time to focus on the Resistance & Support indicator. In case, you are looking for a valid trade setup, the support zone will be merged with the purple color diamond mark.
In short, the support zone must coincide with the purple colored line drawn by this indicator. If you get the green signal from this indicator, you can take longer with a 2% risk. On the contrary, when you get a mismatch between the purple line and the support zone, avoid taking any trade. In most case, these are the key zone where the false spike and breakout takes place. By avoiding the long trade, you will be able to minimize the risk.
Resistance And Support Indicator For MT5 - Sell Entries
Shorting or selling the instrument requires a downtrend. The experts take the short on the bearish reversal but this requires extensive skills. We are expecting you have less experience in the trading industry. So, let’s learn about the trend trading technique. Find a market that is showing new lower lows.
It is the classic traits of the downtrend. As you identify the downtrend, mark the important resistance. The resistance level should provide a strong bearish trade setup. As the price retest or test the resistance, take a look at the candlestick pattern. The candlestick pattern should tell you the price is looking to create a new low.
Right at that time, the rejection bar should touch the green-colored resistance level. The green-colored resistance level shows us the sellers are dominating the market and ready to create a new low. If the Resistance & Support indicator fails to provide a promising resistance zone, you should not take the trade.
In case, you take trades at the bearish reversal, you must look at the purple dot formed at the weak support zone. Wait for the daily closing of the price below the purple color weak support. After the break, the weak support will turn into strong resistance. So, short the asset on that zone on the minor retracement. But such entry requires patience and extensive skills. Unless you have both, you should stick to the trend trading technique.
Resistance And Support Indicator For MT5 - Conclusion
Everyone knows Resistance & Support indicator is a prime tool for retail investors. But no one can say, a specific tool can eliminate the losing orders. Expecting the losing orders should be embedded in your subconscious mind. This will force you to lower the risk in each trade and you will be able to improve your executions.
On the contrary, when you increase the risk just because you have mastered the use of the Resistance & Support indicator, you are imposing heavy stress in your mind. You never know when you will lose the trade. Once you lose a big trade, you will no longer adhere to the common rules.
Just by ignoring the money management rule, you might even blow up the trading account. Just to eliminate such possibilities, you should strictly follow 2 rules. Never take the trade with more than 2% risk no matter how convincing the setup is. Secondly, you must not take any decision based on emotions. An emotional approach can ruin your career and wipe out big profits. Consider the indicator just as a tool nothing more. When you do this, you can significantly improve your win ratio as you will know the method to find the perfect Resistance and Support.
