It displays alternative (mathematically calculated) support and resistance levels, as well as the levels the price is most likely to achieve in the near future.
The calculation is based on history data, and the quality of quotes is critical when generating lines.
The lines built by Magneto Pro and Magneto Weekly Pro do not change on the entire calculation period.
Magneto Pro can be used both in conjunction with an existing strategy and as a self-sufficient trading strategy. The product consists of two indicators working at different time intervals. It is designed for intraday scalping (Magneto Pro) and working within a week (Magneto Weekly Pro).
- Percent - main parameter affecting the calibration of all levels.
- Future time - time (in minutes), starting from which a level anticipated for the next day is shown.
- History (days) - amount of days displayed on a chart.
- Brick length - brick length, in days.
- Magnet color - target level line color.
- Magnet width - target level line width.
- Magnet style - target level line style.
- Echo color - support/resistance level line color.
- Echo width - support/resistance level line width.
- Echo style - support/resistance level line style.
- Echo1 width - support/resistance level line width.
- Echo1 style - support/resistance level line style.
- Echo2 width - support/resistance level line width.
- Echo2 style - support/resistance level line style.
- Boomerang color - support/resistance level line color.
- Boomerang width - support/resistance level line width.
- Boomerang style - support/resistance level line style.
- Sell zone color - sell area line color.
- Buy zone color - buy area line color.
- Buy Sell zone width - sell/buy area line width.
- Buy Sell zone style - sell/buy area line style.
- Future color - anticipated target level line color.
- Return point indicator - show return pattern (flag).
- Sensitivity - return pattern sensibility (in points).
Examples and Patterns
If an important level is broken, a red flag appears signalizing a possible return to this level.
- Level 2 broken, the price returned to the level after one day.
- Level 4 broken, the price returned to the level after one day.
- Level 5 broken, the price returned to the level at point 8.
- Level 7 broken, the price returned to the level the next day.
- Level 10 broken, the price returned to the level the same level.
- Level 12 broken, the price returned to the level the same day at point 13.
Target Level pattern
1, 3, 4, 7, 9, 10, 11 – white target levels serve as a kind of a price magnet. Perhaps, this is the main indicator pattern. As we can see, the price did not reach the point 3. However, the next day it returned and the level became important. The price returned to it multiple times both from above and below. Indigo line is an anticipated target level for the next day. The level can change till 00:00 of the terminal time. Then, it stops changing and turns white. Use that level with caution and select only flat market when working with it! The Magneto Weekly Pro indicator works the similar way.
We can also receive some accurate ideas concerning possible price reversals (roll-backs from yellow, white and thin green lines are used as support and resistance lines). Any of the main levels can be used as a reliable point of "adding" to a trend which is quite useful for long-term traders.
Recommendations and Conclusion
This indicator should not be perceived as some sort of an axiom for trading Forex. This is just a subjective approach to a price behavior based on statistical handling of levels identified by the author. I sincerely hope that all users of Magneto Pro will find their own "golden" patterns using the provided resources. Be careful when averaging open positions and stick to the money management rules!