Support n Resistance
- Indicators
- Pavel Verveyko
- Version: 1.0
- Activations: 5
The significance of these levels lies in that the price may reverse or strengthen the movement when passing such levels, since they are formed as a consequence of the natural reaction of market participants to the price movement, depending on which positions they occupied or did not have time to occupy.
The psychology of the level occurrence: there always those who bought, sold, hesitated to enter or exited early.
If the price bounces off a support level and moves up;
- those who bought regret not buying more and think of increasing the lot if the price returns to the level;
- those who sold realize they mixed the direction and hope the price returns to the level so that they are able to break even;
- those who closed early understand that the price actually goes in "their" direction and think of opening positions again if the price returns to the level;
- those who were uncertain about the direction and hesitated to enter now see where the price goes, but realize that it is too late and the price has already left; they think of opening positions if the price returns to the level.
That is, all interested participants plan to buy with a rollback to the level.
A rollback to the support level area may provoke a new wave of buys and upward price movement.
If the price breaks the level downwards, the opinion of traders will change radically, and the support level will become a resistance level.
A level is a blurred line, a narrow price range.
When working with the levels, the following signals are used:
- rebound from a level,
- level breakout,
- rebound from the opposite side a level after a breakout.
Settings:
- Size_History - the size of the calculated history.
- Period_Candles - the number of candlesticks for calculating one indicator point.
- Type_Arrows - label style.
- Send_Sound - sound alert.
- Send_Mail - send an email notification.
- Send_Notification - send a mobile notification.
- Send_Alert - standard terminal alert.