Posting Point
To fully utilize the Dynamic Support Resistance indicator MT5, you will need to ‘rethink’ your future approach to support and resistance. That doesn’t mean the core principle of support and resistance has altered. The traditional principles still apply when looking for price congestion, which defines potential support and resistance platforms that either remains strong or breached.
The accuracy of these signals, not the calculation and display of levels, is the game changer with this indicator. Most support and resistance indicators currently show a broad price range. The pricing levels set for you with pinpoint accuracy clearly on the screen are what you need, not wide bands. The indicator does not draw or display bars, as you might expect. It achieves pip-level precision!
Things MT5 traders should consider
Second, and probably more importantly, traders must assess the strength or weakness of such price zones. After all, the closer the market gets to a substantial area, the more likely the level will hold. The support resistance indicator MT5 creates single lines to highlight support and resistance areas, but the lines cluster together to show more vital regions.
If one, two, or three lines cluster, solid price support or resistance area. In other words, clusters of lines lend enormous weight to specific locations, as you can see. Now you have an indicator that displays these locations precisely and indicates their strength. Clusters are the key, and the market will work to break them everywhere you see them.
Finally, the indicator builds levels as the price movement develops in real-time. Using this signal may require you to ‘rethink’ this area. Also, while the hand uses historical price levels to forecast future price regions, it constantly analyzes the current price action to offer support and resistance levels IN THAT AREA.
The created support and resistance levels will match the recent price activity. Then it’s only a matter of moving up and down the timeframes to find longer and shorter-term support and resistance areas, as well as clusters.
It’s a powerful indicator that shows the price’s direction at any time. Most traders make money by correctly identifying support and resistance levels. This indicator allows you to determine EXACTLY where and when price moves up or down, allowing you to:
- Best entrance levels
- Securing exits
- Stop-loss levels
- Great profit margins
- But, like all Quantum Trading indicators, there’s more!
Affects the price movement
Each line affects the price movement throughout the chart. The indicator ignores support and resistance. A price level that now functions as support may become resistant in the next session.
- It’s almost magically correct. The indicator’s dynamic support and resistance lines match the current price action.
- This signal is significantly more potent when combined with Quantum Dynamic Price Pivots.
Synopsis
Synopsis this is a different way of looking at support and resistance that may take some getting used to. The main distinction is that you will need to trade many periods to maximize the strength of this indication, which will indicate future levels for you beyond the current price action, and the crucial factors to remember are:
- These indicators give us two types of support and resistance lines for trading precision:
- During the Look Back era, pricing has tested the dotted lines at least once.
- More robust indicators of support or resistance are solid lines in the chart where price has been tested more than once during the LookBack period.
- Look for clumps of lines on the gauge. Where these exist, there is considerable support or resistance.
Find levels of support and resistance beyond the current price movement. To be clear, the indicator generates these levels based on recent price activity (where it is most useful!!!).
Customizable
Finally, the indicator is fully customizable. First, each currency pair has unique trading characteristics and price chart profiles. Therefore you can customize the hand to represent more or less support and resistance. Second, you can customize the detail to your trading style. Some traders want more, others less. All of this is configurable and discussed below.
The Resistance indicator MT5 works in all timeframes. The indicator’s default setting is 100 BarsAgo (see below), which works well for M1 to H1. Then double it again for long-term charts. See below.
