| Support and resistance lines give traders essential levels on a chart where a price trend will likely reverse or pause. Traders can use them to make more informed trading decisions, such as entering or exiting positions, setting stop-loss and profit targets, and identifying potential price breakouts or breakdowns. Below are the support and resistance levels criteria that are part of the S&R (or SNR) indicator. The indicator's parameter determines the number of bars required to recognize a support or resistance level. For example, when identifying a support level, a parameter value of 9 indicates that 4 bars to the left and 4 bars to the right of the peak bar should be above the low of the peak bar. In this case, the low of the peak bar will be the support level. And 9 bars (4 on the left, 4 on the right, and the peak bar itself) form this level. Resistance levels are similarly recognized in the S&R indicator. Experienced traders will find that peak bars are recognized in the same way as in the Williams' Fractals indicator, and only the visual representation of the indicators differs. It is also worth noting that the S&R indicator includes only the last 3 support and 3 resistance levels. |
