An indicator of support and resistance levels:
Author: Igor Kim
Hi, is anybody here can make this wonderful tools more easier to use? I've inserted this file in expert/indicator but nothing appears in my chart...
It needs a .csv file by name Levels_RS_,symbolname>.csv. The coder says " It is necessary to create an individual file "Levels_RS_<symbol name>.csv" for every instrument." Now, how can we create a .csv file? Also, once created, where is it supposed be placed?
Forum on trading, automated trading systems and testing trading strategies
Scripts: Drag and Drop Support and Resistance lines with color differentiation
newdigital, 2014.06.11 14:17
Static Support and Resistance in the Forex Market (based on dailyfx article)
As with most forms of technical analysis, the longer the term being used
in the analysis the stronger the response that may be elicited. Pivot
points of monthly and weekly flavors will often attract significant
interest, and should be followed by traders even if using shorter-term
hourly and four-hour charts.
Monthly and Weekly Pivot Points can bring value on long as well as short time frames
One of the most alluring aspects of technical analysis is the ability of
statistics and mathematics to show patterns in human behavior. Nowhere
is this more prominent than in the study of ‘psychological’ levels in
Most human beings think in even rounded whole numbers. We can’t help it;
our species has evolved to value simplicity. As an example, ask someone
how much they paid for their car or their jacket, or even their latte.
They’ll likely round their answer up (or down) to the nearest round
number. This type of rounding will often happen in markets as well; as
traders place their stops or entry orders at or around these levels in
the same way that most human beings will respond when asked how much
they paid for their coffee.
GBPUSD Weekly chart with ‘Major,’ and ‘Less Major’ levels identifiedAs you can see, these levels can come up quite often in a market,
particularly during strong trends as new prices run into fresh
resistance levels (or support levels in the case of a down-trend).
This study of support and resistance can be taken a step further with
the ‘minor’ prices that are set in 25-pip increments; known as the
‘minor’ psychological levels. In the chart below, we’ve moved down to
the hourly chart in the same market looked at above (GBPUSD) with the
addition of these more granular ‘minor’ levels:
Hourly GBPUSD with Minor psychological levels added (25-pip increments)
With psychological levels taking place every 25 pips, there are numerous
opportunities for traders to ‘catch swings’ in a market.
To put more power behind psychological levels or pivot points, traders
can look for confluence amongst these analytical methods; including the
dynamic support and resistance mechanisms that we’ll investigate in our