Price Action traders know Support and Resistance levels are the dominant element in their analysis, as well as other strategies. Support and Resistance is an elementary factor assessed for the prediction of points of trend reversals in both directions. This indicator is designed for the MetaTrader 4 for automatic recognition of concentrated prices based on which the zones are plotted on the chart. The indicator that can determine these levels instead of the trader makes the whole process faster, more precise, and non-subjective.
Support and Resistance Zones first appearance was on 21st October 2015 on the MQL5 market, developed by Mihai-Andrei Mitrache from Romania. This developer has his team for analysis and automated solutions although only two products are offered on the MQL5 market and their website. The latest version is 8.3 from the beginning of 2019. It has been updated many times with additional features, bug-fixing, and stability. It belongs to the paid category and has changed prices a few times according to the past user comments.
Automatic zone recognition has two modules for this purpose. The first one is gathering values on the historic peak levels, or highs and lows. These points are recorded and they form clusters. This data is passed on to the second algorithm module which disregards the values least repeated and accurately defined the clusters. These concentrate price levels are then represented as horizontal ranges on the MT4 chart creating the Support or Resistance levels. As an additional feature, the zones are divided into week normal and strong, depending on the price concentration, each shaded with a different color. Therefore, the Support and Resistance Zones indicator is not taking into account the Fibonacci zones, it is purely constructed on the mentioned modules.
The indicator is dependant on the historical price movements, this data is needed to find the levels and clusters. If you do not have enough history, the author suggests downloading from the History Center in the MT4 platform. You just need to select the asset and the timeframe. Once done you will be able to adjust several parameters to accommodate the indicator to your strategy. Setting the number of history bars, the indicator can be adjusted to use more recent price clusters instead of relying on old data. For traders that use lower timeframes, for example, M5, some important historic price levels could be important from a few days back, therefore the history range can be increased.
You do not need to use Support and Resistance zones for the current timeframe if traders think zones from higher timeframe are more reliable, the indicator features this setting. The Snap to Price setting is an extension that aims to adjust the zones to the recent price changes, regardless of the history bars scanned. This is especially useful if you want to clean the chart of excessive zones, not relevant to the current market. Snap To Price Percentage will define how far a trader wants to account for the recent period. We have mentioned the zones have strong, weak, and normal levels if you for some reason what only the strong zones, this can be optimized using the Zones Power Display.
Support and Resistance zones with are defined by at which level the cluster is defined, or the “sharpness”. Changing the S&R Power Split Display will result in thin or wider zones. You can also customize and enable what will be displayed from the settings range on the chart, so you have control of what is enabled. The indicator has a wide range of settings that extends how it can be used to various strategies, and some traders, it is important to have a tool that eliminates the subjective chart interpretation.
The price of Support and Resistance Zones indicator has seen some drastic changes over the years. At one point it seems the price was above $500, which is certainly too high for a specialized indicator. As of now, the price is $85 with 10 activations. Renting is offered for $15 for one month and $25 for 3 months. Demo version has been downloaded 1247 times, showing mediocre popularity, although one could expect more since this is a common element in many strategies. However, the rating is perfect 5 stars from 5 reviews.
The only useful review is left by Lev Vladimirovic Marushkin:
“So far I am very pleased with the indicator and the support. I use this one mainly for entry confirmation and for taking profit and the MTF possibility is a very nice feature! I have both indicators of this author and they are both great in helping you to earn some green pips. 🙂 Thank you Mihai-Andrei for creating this!”
If you rely heavily on the Resistance and Support lines, even though they are regarded as non-existent in forex by part of the traders’ community, this indicator is based on logical and empirical methodology with plenty of changeable features.
This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/12395