New article Drawing Resistance and Support Levels Using MQL5 has been published on mql5.com:
This article describes a method of finding four extremum points for
drawing support and resistance levels based on them. In order to find
extremums on a chart of a currency pair, RSI indicator is used. To give
an example, we have provided an indicator code that displays support and
All trend figures, lines and models are combinations of support and
resistance lines, which underlie the classical trend analysis.
Resistance line is based on maximum prices, which occur when traders
("bulls") stop buying currency at a higher price and begin closing open
positions for buying. The price of a financial instrument responds to
this with a rollback until a similar situation occurs among "bears",
i.e. support line is based on minimum prices.
Trading with support and resistance lines can occur outside these
lines, as well as at price fluctuation inside the figure formed by these
Determining maximum and minimum prices at a given period of time does
not pose any difficulties. It is important to choose length of analyzed
chart (time interval) right, that it is constantly changing and
therefore can not be set manually. To find this currency chart section,
I'll use Relative Strength Index (RSI) indicator, that is included in
the standard set of indicators of MetaTrader 5 terminal.
Overbought and oversold levels are determined according to levels of
RSI indicator. At these moments the chart of our currency pair deviates
from its direction (trend) leading to a price rollback. Specifically
here our extremums will be formed, at these gaps we will be searching
for minimum and maximum prices.
As an oversold level, I will take the RSI indicator value equal to
35; overbought level - 65 (upper and lower levels are equally positioned
from the middle of RSI = 50). The period of RSI indicator equals 8.
It should be noted, that often during a strong trend, for example,
increasing trend, RSI repeatedly crosses the upper level, but fails to
reach the bottom. This leads to a necessity of level adjustment, which
does not correspond to the trend direction.
Fig.4. Search zones for extremum bars
Author: Aleksandr Teleguz