User Guide – Support Resistance Indicator

User Guide – Support Resistance Indicator

This user guide is for the Metatrader support/resistance indicator.

Quick Start

Load Metatrader 4. Place the indicator onto the required chart and open the input settings box. Enter the free activation code into the panel. You will need to login to get a code. Enter the other settings as necessary. Each chart is different in terms of support and resistance areas so the inputs should be modified according to the chart and your needs.

Figure 1: How to load the support/resistance indicator onto a chart
Figure 1: How to load the support/resistance indicator onto a chart © forexop

Line detection is demanding of CPU time. Therefore to reduce processing time the detector will only examine the number of bars set in the “Max. history bars” setting. You can change this to a higher or lower value. On slower computers you can use approximate processing mode. This calculates lines at lower resolution but is much faster.

You can also speed up the indicator by using a smaller value for “Bars to analyze”. This is the “window size” over which the indicator examines for resistance and support areas. A bigger value is needed to detect bigger structures like lines, channels and ranges that span wide sections of the chart. Whereas a small value will be better at detecting smaller structures.

Meaning of the colors

The lines displayed on the chart are colored for easy reference. You can change the colors from the settings box.

  • A basic support/resistance line (orange)
  • A previous support/resistance that may soon become active (purple)
  • An alerted line is a line that is nearest to the current price (orange)
  • Ellipses mark zones of confluence or meeting S/R lines (purple)

Input Settings

Input setting Comment
Bars to analyze support-resistance Number of bars for scanning support-resistance. More bars=slower.
Minimum strength for support-resistance line (0-1) Threshold for accepting a line as a support or resistance
Matching sensitivity Zero is the strictest, increase to relax the condition
Support-resistance line color Color setting
Color for alerted line (licensed version) Color setting
Front projection line color Color setting
Text color Color setting
Color for confluence zones Color setting
Alert type The indicator will create text,email or popup alerts if set (licensed version)
How close should price be before alerting (points) The threshold distance before raising an alert (licensed version)
Max. history bars (zero for all) Number of chart bars to process (zero for the complete chart)
Processing mode Normal=1 Approximate=5 (use on slower computers)

On loading the indicator, if no lines or too few lines are displayed, do the following:

  • Set the “Bars to analyze” lower
  • Set the “minimum strength” to zero
  • Increase the matching sensitivity to 0.4 (or higher)

Adjust the settings to find the right balance. Support and resistance areas are often long lasting so the settings can be saved for future use.

Figure 2: The indicator will raise an alert if the price moves close to a resistance or support
Figure 2: The indicator will raise an alert if the price moves close to a resistance or support © forexop

Indicator Outputs

The indicator will output the distance to the nearest resistance/support line. The number output is in chart points. A positive value means the price is above the line. A negative value means the price is below the line. From this you can determine if the line is currently a support or a resistance.

Figure 3: Confluence types
Figure 3: Confluence types © forexop

It also outputs the strength of the nearest line. The support/resistance strength ranges from zero to one where one is the strongest and zero the weakest.

Figure 4: The indicator creates two outputs
Figure 4: The indicator creates two outputs © forexop

Open Metatrader’s data window (CTRL+D) to show the signal values. You can hover with the mouse cursor over any point to display the value in the data window.

The table below lists the output signals.

Signal/Mode Name Description Free version License Version
0 S/R distance Distance of mid price to nearest support or resistance line (points)
1 S/R strength Strength of the nearest support/resistance (0=weakest, 1=strongest)
2 Confluence point The center point of confluence zone (chart price)
3 Confluence type 1=bullish/bullish, 2=bearish/bearish, 3=bullish/bearish

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