Support and resistance MTF indicator for MT4 is a very useful tool that provides forex trader with support and resistance levels of multiple time frames (MTF) in a single price chart.
Indicator Description
Support and resistance are two foundational concepts in technical analysis. These levels can be found in all charting time periods; daily, weekly, monthly. Traders also find support and resistance in lower timeframes like one-minute and five-minute charts. But the longer the time period, the more significant the support or resistance.
To identify support or resistance, you have to look back at the chart to find a significant pause in a price decline or rise. Then look forward to see whether a price halts and/or reverses as it approaches that level. Many experienced traders will pay attention to past support or resistance levels and place traders in anticipation of a future similar reaction at these levels.
Support and resistance MTF indicator makes this job much easier as it displays support and resistance of multiple time frames (MTF) in a single price chart as Blue support lines and the as Red resistance lines.
MTF is a very powerful technique because the support and resistance levels become even stronger and reliable when they correspond to various timeframes than a single one. For example, H1 support and resistance become stronger if it appears at the same price level in an H4 price chart.
More about MTF indicators here: https://altraforex.com/post/mtf-forex-indicator/
Using Support and resistance MTF indicator, forex traders can identify the bullish and bearish trends and the best entry and exit points in a snapshot.
After the installation, your trading chart will look like this:
Basic Trading Signals of the Support and resistance MTF indicator
The two trading methods for trading support and resistance are breakout and reversal trading. However, both these methods require additional confirmation from other trading tools.
If the price breaks a resistance level, traders anticipate a Bullish trend and enter the market with a BUY trade. The stop loss is below the support level, and the take profit is at the next resistance.
Similarly, forex traders can place a SELL position indicating a bearish price trend if the price breaks a support level. Traders should put a stop loss above the resistance and book profits at the support.
On the other hand, if the price fails to break resistance, it indicates the failure of buyers. So, forex traders anticipate the sellers to gain strength and start selling.
Similarly, if price fails to break support, it indicates the weakening of sellers and strengthening of buyers. This warrants a Buy trade as it means a bullish market to follow.
My Conclusion on the Support and resistance MTF Indicator
Support and resistance levels are essential to identify the best entry points and the stop loss and take profit levels. Moreover, they assist forex traders in identifying the bullish and bearish trends and their reversals. However, like many concepts in technical analysis, the explanation and rationale behind them are relatively easy, but mastery in their application often takes years of practice. I hope this free indicator will help you with that:
P.S. Have problems with installation? Email me at olivermurphy@altraforex.com or support@altraforex.com
I would love to help!
