Automated Support Resistance
Automated Support & Resistance (ASR)
The indicator is intended for professional traders who understand the importance of Support and Resistance levels in developing a trading plan. ASR makes your trading more reliable and saves much time, as it shows you automated Support/Resistance (S/R) enhancement of golden ratio from Fibonacci strategy calculated on higher scale to lower scale (Weekly, Daily and H4). Then S/R levels are automatically displayed on one chart, in your current chart at any pairs and on any scale you want to trade. Even on H1 or below if you activated scalping mode, then S/R for scalping style will be available automatically.
- As a leading indicator, Support and Resistance on ASR are available before the price reach those levels. Keep in mind that S/R on higher scale is controlling lower scale.
- If a Support broken, then its level becomes current (new) Resistance.
- If a Resistance broken, then its level becomes current (new) Support.
Basically, price will rise from Support and fall from Resistance. Keep in mind that price will rise suddenly after hitting Support level, and price will mostly fall after hitting Resistance level. Most effective strategy for ASR is placing a pending order Buy-Limit on strong Support and Sell-Limit on strong Resistance. By your understanding of risk, good trading psychology and good money management for each size to be traded are always needed for any strategy, of course. Trading wisely with patience and no greed is still recommended, although we have revealed the zone of Support and Resistance levels.
On the screenshots, we can see how swing traders deal with the markets.
- Very helpful for creating a trading plan for any pairs.
- Saves your time because no more drawing manually, and have more time when taking a look for overall market.
- Easy to decide trading style: Scalping, Intraday, Swing, Positioning, or even use some of them with no more noisy chart.
- Able to use martingale strategy on each level of Support and Resistance to come.
- Just forget lagging indicators, the time of "catching a falling knife" begins preventing from "missing the train".
Trade with patience like a farmer. Have a nice day, traders!
1. Key up/down breakouts are available before the price is actually there. Doesn't repaint.
2. Previous broken levels become new S/R.
3. Price Jump and Fall levels can be used for scalping.
How to use this leading indicator:
Sell: In each scale, wait until overbought above 80%, then place a pending order "Sell Limit" in every Resistance. Minimum target is: one Support below it, or wait until oversold above 70% for next target.
Buy: In each scale wait until oversold is above 80%, then place a pending order "Buy Limit" on each support. Minimum target is: one Resistance above it, or wait until overbought above 70% for next target.
Regardless OB/OS above, if there are 2 lines or more of S/R are adjacent to each other or even coincide, then this indicates an area of strong support (buy-limit) or strong resistance (sell-limit).
- Stability, constancy.