Indicator. Zones of support and resistance levels
The most reliable tool in the hands of any technical analyst is support and resistance levels.It is these levels that magically work in the market, because the price then bounces off them, on the contrary, gaining maximum acceleration, punching them and striving for a new price point.However, in practice, many beginners face enormous difficulties in building them.This is due to the fact that the price may react quite differently to them, and often do not reach or falsely punch.Many sin on the wrong building, but few people think why they work. In fact, the levels of support and resistance are formed on the basis of protective orders on Forex, namely the zones where traders set their stop orders.Since traders place their protective orders at approximately the same points, but not at the same price point at once, the real support and resistance levels have a greater thickness than traders draw in practice.That is why it is very important to do not just marking the levels, but also to highlight the zone where the price movement becomes abnormal.The Levels indicator is a technical analysis tool that makes automatic marking of support and resistance levels based on round numbers.Since the effectiveness of the levels is high on all trading assets, whether it is currency pairs or stocks, the instrument can rightly be considered a multi-currency.It is also worth noting that the round levels, as well as support and resistance zones can be an excellent basis for building any trading strategy, so the indicator can be used absolutely on any time frames.The principle of application of the indicator. SignalsSupport and resistance levels can be used in two areas, namely as a signal tool or as an auxiliary.Under the concept of an auxiliary tool, we mean the use of support and resistance levels as the definition of the stop order installation point, as well as the target reference point.Also, many traders use levels as a filter, namely do not conclude a position if the signal originated near the level.If we talk about the signal function of The newlevel indicator, the signals can appear both on the rebound of the support or resistance levels, and on their rebound.If you adopt the tactics of breaking the levels, the buy position should be opened when the resistance breaks from the bottom up, and the sell position when the support breaks down from the top down.When trading from the levels, the position is opened in the opposite direction to the current price movement, namely in the direction of the expected rollback. In the next exampleThe principle of the indicator. SettingsThe NewLevel indicator is based on round levels with two zeros at the end of the quote. The tool searches for these levels on the chart and builds a layout with a given distance from each other.In order for you to be able to adjust the tool to a certain type of markup, depending on your working time frame, I propose to consider the basic settings in the photosin the steps line you can change the distance between levels in points, and in the count line you can set the number of lines above and below the current price. In the zone pip line, you can change the width of the price level zone. The color variable allows you to choose the color for the levels, and the style variable line style.In conclusion, it is worth noting that the NEWLevels indicator is an excellent assistant to the trader, which allows you to abandon the daily routine marking of levels and save time.