The indicator accurately determines price levels. Features of using the X-Lines indicator

The price of any financial instrument over time makes cyclic movements from one value to another. Price dynamics at these values ​​slows down and reverses. They are used to identify price level indicator lines, detailed below. You can download it.

Forex price levels

IN general case the price level (CL) is such a price of a financial instrument at which the direction of the current price dynamics changes. Since the price can move only in two directions - up (grow) or down (fall), then there are only two types of CC:

• support;
• resistance.

The price support level (PSL) is located under the price and creates an obstacle for its downward movement. Price resistance level (PRL) is located above the price and creates an obstacle for its upward movement.

The strength of each TP is different and is determined by the number of times it is tested by the price (its approach to the TP and a reversal). The more times the CC has been tested, the stronger it is.

However, it should be borne in mind that over time, the strength of the CC can change significantly. This is due to the nature of price levels. They are formed where there are many corresponding orders of traders:

• for PMU - pending buy orders or TakeProfits of open sell orders;
• for NCC - pending sell orders or TakeProfits of open buy orders.

There are several ways to identify the control center (for example, by peaks / troughs, by areas of consolidation, by bodies or shadows of candles, etc.) and individual groups of traders use different ones. Therefore, on the same price chart, different traders can mark different TS. This does not interfere with their work at all, since they choose the most appropriate markup option for the strategies they use. However, various methods for determining the SD create difficulties in describing trading strategies.

Therefore, technical tools have been developed that make it possible to unambiguously display the CC on the price chart in accordance with a certain methodology. Due to this, in the descriptions of trading strategies, it has become sufficient to indicate which indicator and with what parameters the CC is marked.

Since this article is devoted to the Lines price level indicator, all the considered trading strategies are carried out using it.

How the CU Lines indicator works

The author of the algorithm of this technical tool is V. Gortsev. In it, he implemented the display on the price chart of only the most significant four CCs - two resistances and two supports. At the same time, at any time, each CC can become irrelevant (if the price has broken through it, then it disappears from the chart, and another, the nearest resistance or support CC, becomes relevant, depending on whether the CCC or the CCC was broken).

The Lines set on the price chart forms 4 bands on it (Fig. 1). Two of them (upper) correspond to the NCC, the other two (lower) denote the MCC. At the same time, the uppermost CCC and the lowest CCC are the most important and strongest (they correspond to a longer analysis period). And the TsUP and NCC located in the middle have less power (they are calculated for a shorter period).

Parameters of the Lines indicator

A trader can change 8 input parameters, divided into 2 groups corresponding to external and internal levels (Fig. 2). Parameters of the most important external control units:

• X1 - billing period;
• Y1 – line thickness;
• L1 - color of the NCC;
• L2 is the color of the MCC.

Parameters of less important internal control units:

• X2 - billing period;
• Y2 – line thickness;
• L3 - color of the NCC;
• L4 is the color of the MCC.

The parameters of the X group are set in the number of candles (in this case, X2 must be less than X1). Group Y parameters are set in points.

Since X1 is greater than X2, the external lines of the CO are also longer (the length of each line is equal to the number of candles used to calculate the price level corresponding to it.)

Price Level Trading Strategies

The most common price level trading strategies are:

• rebound trading;
• trial trading.

Trading on the rebound from the SD assumes that these levels are strong and create an insurmountable obstacle for the price on the next test. In this case, when the price approaches the MCC, a long position is opened with a StopLoss a few points below the MCC. And if the price approaches the ZUS, then a short position is opened with a StopLoss a few points above the ZUS. The TakeProfit value should be 2÷3 times greater than the StopLoss size (for a long position, it can be placed on the internal NCC, and for a short position - on the internal TCC). But if on the way to TakeProfit there is a CCC (for a long trade) or a CCC (for a short trade), then you should not open such a position.

An example of a profitable trade on the pullback strategy is shown in Fig. 3. It can be seen that the CU has formed - resistance (indicated by a red line, the moment of formation is indicated by a red arrow) and support (indicated by a white line, the moment of formation is indicated by a white arrow). The second NCC test is indicated by the green arrow. At this time, it was possible to open a short position with the StopLoss level indicated by the yellow line and the TakeProfit level indicated by the blue line. The ratio of profit to risk in this case is 3:1.

Trading on the breakout of the SD assumes that these levels are weak and the price will overcome them at the next test. In this case, pending orders are set:

• BuyStop above NCC with StopLoss under NCC;
• SellStop under TCC with StopLoss above TCC.

The TakeProfit size should be several times greater than the StopLoss size.

An example of a profitable long trade using the breakout strategy is shown in Fig. 4. On it, the TsUS and TsUP are marked with thick red and white straight lines, respectively. The BuyStop setting level is indicated by a thin red line, StopLoss by a yellow line, TakeProfit by a blue line (risk to profit ratio is 1:3).

As for the Lines indicator, it additionally allows you to determine whether the CC has changed over the period, the duration of which is determined by the X1 value:

• the change corresponds to a different position of more significant and less significant DCC/NCC (in this case, only the CCC or only the CCC can be changed);
• immutability corresponds to the coincidence of more significant and less significant DCC/NCS.

Video

Murrey Math Line X MetaTrader indicator is an indicator showing pivot lines that will definitely help every trader who knows how to trade with resistance, support and pivot lines. It shows 8 different lines (additional lines are also possible) on the main chart, helping you find the best buy, sell and exit points. You can download this indicator for the MT4 and MT5 platform.

Input parameters:

• P(default = 64) — period in bars or in other periods (set using MMPeriod), on which the lines will be calculated. The smaller this number, the "fresher" and less accurate the lines will be.
• MMPeriod(default = 1440) — base period in minutes (60 for hourly lines, 1440 for daily lines, 10080 for weekly lines and 43200 for monthly lines); if greater than zero, then the indicator will use P MMPeriod minutes to calculate the lines. If zero, then the indicator will use P current bars for its calculations.
• stepback(default = 0) — shift back for calculation of lines (in current bars or in MMPeriod (if set) minutes).
• Other Options- affect only the visual display of lines.

Using Murrey Math Line X is easy. The 0/8P and 8/8P lines are the strongest support and resistance lines and are very hard to break. The 1/8P and 7/8P lines are weak support and resistance lines, but if the price stops near them, it will change direction. The 2/8P and 6/8P lines are strong reversal lines. 3/8P and 5/8P are the bottom and ceiling lines of the middle trading range; there is a very high probability that the price will either break through this range very quickly or stay in it for a long time. 4/8P is the strongest support and resistance line. You can sell and buy with confidence when the price breaks this level. The blue arrow shows the last bar for which the lines were calculated.

(Linear Regression Indicator, LRI), developed by Gilbert Raff in the recent 1991, is an effective and easy-to-use tool that helps predict future prices before they become “overheated”.

The linear regression indicator is displayed on the chart in the form of a channel, which is formed by two parallel lines equidistant from the trend. The width of this corridor depends solely on the selected timeframe.

The indicator can be used when working with almost any asset, from currency pairs to precious metals.

LRI settings and parameters

This is what an ordinary channel looks like, built by the linear regression indicator. Depending on the situation, its boundaries can be either resistance or support lines. In order to create channels that fully meet your requirements, you need to make the appropriate settings. The simplicity of this procedure allows you to complete it in a matter of minutes.

The main parameter that a trader needs to set is the channel width. In MT4 it is in the tab fixed date time. The user will need to set a working date, based on the terms of the timeframe he sets.

For example, if we are talking about work on hourly intervals, then one day's data will be enough.

The remaining settings perform a predominantly decorative function. Their main task is to make the visual perception of the chart as convenient as possible for the trader. Using tabs stop color And Trend Line Color set the colors of the price and channel borders, respectively. You can also set the desired thickness for the edge lines by changing the settings in the paragraph LR WIDTH. On this, the channel construction procedure can be considered completed.

Indicator calculation formula:

• x– current time period
• n– total number of periods

How to use the linear regression indicator

There are two main strategies for working with the linear regression indicator:

• for a turn;
• for a test.

In the first case, the trader focuses on the dynamics of price changes within the channel. When it approaches the resistance or support line, the bet is on the fact that the movement will go in the opposite direction. That is, if the price has come close to the upper limit, you can get rid of the asset. If it is at the very bottom of the channel, it makes sense to think about buying. In case of , above is acquired PUT(forecast depreciation - DOWN option), below - CALL(exchange rate growth forecast - UP option).

The breakout strategy involves the use of orders that are placed outside the boundaries, not too far away from them. Considering that price violations are sometimes short-term, it is also better to play it safe by setting stop losses. And, of course, regardless of the chosen strategy, it is important to assess the situation on the market as calmly as possible.

conclusions

is a convenient auxiliary tool that greatly facilitates the work of a modern trader. It can be used on almost any chart, and not necessarily in the singular. Professionals often use complex modifications that allow you to change the settings more flexibly, in accordance with the desire of the user. For beginners, it makes sense to pre-train on the classic versions of the indicator, evaluating its capabilities when trading on demo accounts.

If you find an error, please highlight a piece of text and click Ctrl+Enter.

Support and resistance levels are one of those technical analysis tools that even the most ardent defenders of fundamental analysis have no doubt about the effectiveness of.

The fact is that behind the simple marked lines on the graph, deeper psychological processes are hidden.

The forex market, being a vivid reflection of the mood of the crowd, always moves from support and resistance levels, breaks through them and turns them into new points of support for movement.

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Unfortunately, there are those who consider levels to be a non-working tool, but such a conclusion occurs only because people do not know how to build them.

The X-LINES indicator is a unique technical analysis tool, thanks to which you can build support and resistance levels in the new MT5 platform completely automatically.

It is worth noting that the levels as a tool are equally effective on all currency pairs and time frames, so the indicator is primarily a universal trader's tool.

A special difference of the X-LINES MT5 indicator from other similar tools is the approach to the weight of each of the levels, namely, it marks both strong and weak levels on the chart.

Installing the X-LINES MT5 indicator

The X-LINES MT5 indicator is designed for use in new version trading terminal MT5. To use the tool, download it and then install it.

Installing the indicator in MT5 is implemented almost according to the same scheme as in its earlier version. To get started, after launching the terminal, go to the top left corner of the file menu.

After opening it, you will see a list of options, among which find "Open data directory" and run it. After opening the directory, you will see a list of system folders. To get started, go to the folder called MQL5, inside which you can find a folder called Indicators.

Dump the downloaded X-LINES file into the Indicators folder, then close the catalog folders. The next step after installation is to update the platform either in the navigator or by restarting it.

After updating the terminal, X-LINES will appear in the list of indicators, and in order to use it, simply drag the instrument onto the chart.

Practical application of the X-LINES indicator

Support and resistance levels can be used in two ways. The first use case is to trade on the rebound of the price from the level.

The second use case is trading on a level breakdown, namely, opening a position in the direction of a breakout. As a rule, at strong levels, the price most often reverses and repeatedly tests it, while the price easily overcomes weak levels.

Since the X-LINES indicator displays both strong and weak levels on the chart, you can build a very simple trading strategy, which will consist of opening positions on a rebound from the red lines and opening positions towards the breakdown of the yellow lines. Example:

In addition to using the X-LINES indicator as a signaling tool, it can be considered as a great helper for setting goals in forex trading, as well as setting your stop orders.

X-LINES indicator settings

Support and resistance levels from the X-LINES indicator are built on the basis of the author's mathematical formula. The only thing that the author has introduced into the settings is the coefficients for building strong and weak levels.

So in the Power High Range variable you can change the coefficient for constructing strong levels (in red), and in the Power Medium Range line you set the coefficient for constructing weak levels.

It is worth noting that the lower the coefficient value, the stronger levels the indicator builds.

Also, in the Period of analysis line, you can set the number of bars on the basis of which the indicator performs its calculations.

In conclusion, it is worth noting that the X-LINES MT5 indicator is an excellent option for automating support and resistance lines.

It is worth noting that the version for MT4 is sold by the author for $100, but it is completely similar to the free version for MT5 that we reviewed in the article.

Download X-LINES MT5 indicator

Hello!. The price of any asset rises, falls or is in lateral movement. It happens that the price reverses, tripping over a certain barrier. If you look closely, there may be a level. Today we will talk about the Lines price level indicator, which will help a beginner to recognize where they are.

Modern market

The price level (1) is a certain place on the chart where the price can reverse . If (1) is at the bottom, then it is support, if at the top, then it is resistance.

You can measure the force (1). To do this, just read how many times the price touched the tip of the wave of this (1). The more such touches were, the stronger it is.

(1) can be marked in different ways. Through the tip of the wave, through different parts of the candle. Professional traders know where the strong are (1). A beginner in trading has to constantly readjust in order not to go astray.

Therefore, technical tools such as this tool are made to help the trader.

Parameters

Lines can be configured with 8 parameters.

X1 is the calculation period,

Y1 is how thick the lines should be,

L1 - resistance color,

L2 is the support color.

This concerns important (1). For less important (1) parameters X2, Y2, L3, L4 are intended. They have the same meaning.

System

Most traders, most of those who are in the market, are looking for a rebound from the level or its breakdown. Therefore, it is possible to form a system that will work for the crowd.

Rebound occurs when (1) strong. In this case, the obstacle will not be overcome. In this case, you can open a position with a stop loss for (1), and take profit is 2-3 times higher. At the same time, you need to see if there are possible reversal levels in the future price path, if not, then you can open a deal. If so, then it is not desirable.

Rebound example

Example, rebound approach. The trend system works like this. There was a trend within the movement from one strong (1) to another. Then the price reaches the opposite (1) and reverses there. After that, it is corrected to (1), which formed between strong (1). There is a reversal pattern and the chart goes further down within the trend. Here, the ratio of take profit to stop loss is not ideal, but this approach has potential.

The breakdown works, so... (1) are redrawn within this tool. They rise after the end of the schedule. Therefore, if in theory you made a good forecast within the trend and in the future path of the chart you have (1) especially if it is weak and internal, then I would recommend that you do the work. Of course, it is worth testing the system. However, in principle, this approach has potential.

conclusions

This tool and work on price levels is an approach with potential. Yes, you can have losing trades, but at the same time, you can remain in profit as a result of work. Of course, provided that you do not stop only within the framework of this method of analysis, but develop your views.

In general, working with (1) is quite modern method . It is used by progressive traders and shows good results.

Do not forget that trading is a business, it is hard work that is not given to anyone who undertakes it. Nevertheless, everyone should have a noble mission to try their hand in life. Even though the risks are great! Therefore, with cold head and with a warm heart take on, perhaps, the hardest work in your life. .

On this issue I have everything! Read my other posts too!