Support and Resistance are the important price levels to watch out during intraday market. These price levels are often tested before development of new trend or often stop the existing trend causing trend reversal at this point. Highly precise support and resistance are almost valueless to experienced traders. Many typical trading strategies like breakout or trend reversal can be played well around these support and resistance levels. The Precision Support and Resistance are highly accurate support and resistance tools designed for serious traders. In addition to accurate support and resistance level detection, the Precision Support and Resistance provide additional four features to aid your winning trading. They include decision candle detection, Intra Candle Probability Calculation, Pivot Analysis and Ladder Analysis. Any of these features can be switched on and off for your preferences.
Support and Resistance
We use the density and geometry approach to compute support and resistance levels. Quite often you will observe that detected support and resistance levels predict very accurately where price penetrate hard or where price reverse back hard. According to you preference, some sensible trading strategy can be developed.
Decision Candle Detection
Decision candle detection module alerts traders the possible big movement. Decision candle is the typical pattern appearing before onset of the strong reversal or strong continuation of the current trend. Therefore, it is recommended to watch out the appearance of this decision candle in your trading especially if they are around important support and resistance level.
Intra-Candle Probability Calculation
Intra-Candle probability is the statistical prediction of future range of close price within candle bar. This tool will display 1%, 5%, 10%, 32%, 50%, 80% levels. The pair of lines will be drawn above and below the open price of the current candle. 50% probability means that the chance of the close price being outside this lines is the 50% from open price of the candle. Instead of doing some guess work, you can precisely estimate when the price will touch support and resistance level or when the price will touch moving average line or when the price will touch Bollinger band lines, etc.
We added the standard pivot analysis technique. Pivot analysis can be used in two purpose. Firstly you can use pivot level to double confirm support and resistance levels. Secondly you can use pivot level to confirm rough trend if that is your interest. For example, if price closed below S1 or S2 in yesterday, then you can say that current trend is downmarket. The built in Pivot analysis provide daily pivot only and you can choose how many number of days you want to display the pivot levels.
Simply speaking ladder analysis will answer the question like what is the probability of the close price will stay outside the specified level of your interest. For example, you believe that the level 1.2400 is important and you want to find out what is the chance of the close price will actually end above this important level. Then you can use this Ladder Analysis to find the probability.
Round Number Detection
Round Number, also called psychological number, is very important support and resistance levels used by many traders. Adding the round number can yield a lot of benefits for your trading. For example, you can use round number to double confirm your reversal entry or price breakout entry. If you don’t want to see the round number levels in your chart, just set Round Number Spacing = Zero in the input setting.
Other Input Settings
Default setting works well for most of currency pairs and timeframe. Changing input parameters are not overly complicated. Below is some description for important parameters.
Support Resistance Setting
Decision Candle Setting
Probability Analysis Setting
Ladder Analysis Settings
Support And Resistance Running Mode
In version 7.2 onwards, you can use two different mode for Support Resistance detection. You can control the mode using Auto Lock input.
Mode 1 (Auto Lock = true): less responsive to market change. This means that the support and resistance will be updated less frequently.
Mode 2 (Auto Lock = false): more responsive to market change. This means that the support and resistance will be updated more frequently. To make use of this feature best, you have to use Lock and unlock feature of each support and resistance levels. How to lock and unlock each support and resistance levels are show in the screenshot.
Why Mode 1 and Mode 2 is different ?
Understand the principle of that support become resistance once the price move below support. Likewise, the resistance become support once the price move above the resistance. This relationship is taking account in Mode 2. Therefore it is more responsive. Mode 1 (Auto Lock = true) does not take account for this (it will change colour but not the support and resistance level itself.).
When you are using Mode 2, it is better you should lock the tactically important support and resistance levels for your trading. To do so, just double click over the support and resistance line in your chart. To remove the locked levels, simply delete it by yourself from chart or just unselect the rectangle box then it will remove the box and other lines from your chart.
If you are consider yourself as the less tactical person or starters, then just go for the Mode 1 (Auto Lock = true). Then you have to do less on locking and unlocking with the tactical levels. I personally prefer to trade only on certain support and resistance levels. But who knows that you are doing something totally different. In that case, just go for Mode 1. Once your trading skills get better, then go for Mode 2 gradually according to your own preferences.
|2 March 2016||7.20||25 December 2017||2117|