[Guidelines] Support, Resistance & Trendlines indicator

Introduction

Support, Resistance levels and Trend lines are foundation concepts in technical analysis that all traders and investors need to know and use fluently.

Support and resistance levels are price areas/zones where the asset price hard to be broken. When price goes to support level, buyers willing to buy. When pice goes to the resistance level, sellers willing to sell. Trend lines are lines that present the direction and momentum of the asset price. They can be also used as support/resistance levels.

We can combine support, resistance levels and trend lines to determine price patterns.

Although these concepts are basic concepts. However, there is a surprise that not all traders know and able to determine support, resistance and trend lines accurately. Because of that, we developed the algorithm to calculate and draw these things automatically.

The algorithm to calculate and draw support, resistance and trend lines is difficult and we don’t see the same tool existing. So we are proud when we can develop Support, Resistance & Trendlines indicator and introduce it to you.

Add Support, Resistance & Trendlines into chart

1. Open the chart and choose the timeframe you would like to trade
2. Click. “Indicators” (In the top tool bar)
3. Select “Invite-only scripts” category
4. Select [SAFE] Support, Resistance & Trendlines to add this indicator into chart
5. Open Settings panel by clicking the gear icon to change indicator’s settings

Support, Resistance & Trendlines settings

• Frame: The frame to calculate. Counted by number of recent candles. Value range: 50 – 500.
• Show Peaks & Valley: Check/Uncheck to turn on/off peak and valley symbols.

Support & Resistance

• Show Support & Resistance: Check/Uncheck to turn on/off showing support and resistance levels.
• Hide Weak Levels: Check/Uncheck to turn of/on showing weak support and resistance levels.
• Right Extend: Check/Uncheck to turn on/off extending the end of support and resistance levels to the right. Be default, these levels start at the first peak/valley and end at the latest peak/valley that form the level.
• Show Range Value: Check/Uncheck to turn on/off the value range of level.

Trendlines

• Show Trendlines: Check/Uncheck to turn on/off showing trend lines.

Use Support, Resistance & Trendlines in trading

Support, Resistance & Trendlines indicator is the great indicator for traders who would like to analyze the market quickly or using support – resistance breakout as trade condition.

When a support level is broken out, it tends to fall to the next support level easily. So you should consider to sell when a support level is broken. When a resistance level is broken, it also tends to raise to the next resistance level easily. So you should consider to buy at this time.

The algorithm in Support, Resistance & Trendlines indicator will calculate and draw support, resistance levels and trend lines automatically when you open the chart. It appears on chart with these information that you can use:

• The red triangle above the candle shows that it is a peak.
• The green triangle below the candle shows that it is a valley.
• Each grey rectangle box is a support or resistance level. The left and the right of box are the first and latest peak/valley where this level is formed; The bottom and the top of box is the limit of this level; The yellow numbers are the minimum and maximum (or range) of this level.
• The bold orange lines are trend lines.

Support, Resistance & Trendlines indicator doesn’t include Buy – Sell signals. It requires you to do your own homework from the information provided to start a trade safely and effectively.

Support, Resistance & Trendlines alert conditions

• Support Breakout: When a support level is broken out (Previous peak/valley is above the support level and close price is lower than the bottom line of support level).
• Resistance Breakout: When a resistance level is broken out (Previous peak/valley is below the support level and close price is higher than the top line of resistance level).
• Trendline Cross Up: When close price crosses over a trend line.
• Trendline Cross Down: When close price crosses under a trend line.