A good Support and resistance indicator is probably the most critical component of an algo traders toolkit. With the Manhattan Global Markets Support & Resistance indicator for MT4, we make the process of mapping support & resistance lines easy as drag and drop.
The settings for this indicator are as follows:
SR_Interval_Bars – Use this to specify the number of bars you would like to consider when mapping out the support/resistance levels. For example, if you are on the M15 interval and would like to see the support and resistance zones for the previous 1 day, then use 96 as the value. Why? Because there are 96 15 minute candles in a day. 🙂
SR_Interval_Hours – You could achieve the same outcome as above by putting in 24 to view S/R levels over 24 hours.
SR_Interval_Mins – Or you could use 60 in this field to see S/R levels over the last 1 hour.
SR_Shift – Now this is an important one. Because S/R levels are constantly moving, you need to know if price broke past an S or R level. If you don’t use an SR_Shift, then the line depicting the S or R level will keep shifting and you won’t even know. Hence, it is recommended to use a generous offset. I use 4 which means that I have 4 candles to visually see the breakout happening before the S and R lines meet back again and continue with the chart.
SR_Bars – Set to true if you’re using SR_Interval_Bars to define how S & R should be calculated
SR_Mins – Set to true if you’re using SR_Interval_Mins to define how S & R should be calculated
SR_Hours – Set to true if you’re using SR_Interval_hours to define how S& R should be calculated.
Once you have the settings defined, drop the indicator from the Navigator onto any chart. It should look something like this: