Stock Algo Support Resistance
Last updated
Last updated
Support and resistance levels are fundamental components of technical analysis, offering vital insights into potential future price reversals. They are corelated to Supply Demand Zones.
Support: Support represents a level on a market's chart where prices rebound during a bearish trend. Consider an asset in decline: there exists a specific price threshold that it does not breach. Every time the asset approaches this price, buyers emerge, prompting a subsequent rise in the market. This phenomenon constitutes a support level.
Resistance: Conversely, Resistance denotes an area on a market's chart where prices encounter difficulty in surpassing to achieve new highs. It serves as the antithesis of support. When an asset approaches this level, sellers dominate, driving the price downward once more. But if Stock able to break this barrier it will go to the next level.
Stock Algo Support Resistance Indicator furnishes users with rudimentary pivot point support and resistance lines that can be helpful when making trades. Recognizing significant breaches of these pivot levels is beneficial for traders. However, market conditions can occasionally lead to breaks in these levels, so traders should exercise caution with any trade.
Integrating: To begin, expand the "Indicators" dropdown menu and navigate to the "Invite-Only" tab. From there, locate and select the "Alpha Supply Demand v1." Upon selection, the chart will show different zones of Supply and Demand with Red and Green colors according to the zone its pointing to.
Support Resistance: Upon integration, you will observe various support and resistance lines as depicted below. The chart illustrates TSLA's distinct pivot points, with red signifying resistance and green indicating support. These values are dynamically calculated in accordance with the selected timeframe.
Settings Menu: By hovering your Mouse over the StockAlgo Support Resistance and opting for the "Settings" feature, you gain the ability to alter both the visual display and underlying configuration. This will unveil a screen analogous to the one depicted below. Upon interacting with the highlighted settings buttons, the corresponding interface, as illustrated, will be presented, allowing for further customization .
Inputs:
Period/Sensitivity: Reducing the period value enhances the frequency of support and resistance levels, while an increase in the period value correspondingly reduces their frequency. For optimal efficiency, it is recommended to sustain the pivot period at 10.
Style:
Color: It offers the option to customize the colors of resistance and support lines, allowing users to select their preferred color scheme.
Line: Along with style there is option to customize how the Support and Resistance lines are displayed. There are several options available that can be changed as per users choice.
Precision: The precision value can be adjusted to modify display styles, though these changes offer minimal impact on the overall chart.
Reset Settings: You can revert any settings to their default values by expanding the "Defaults" dropdown and selecting "Reset Settings." Alternatively, you can save your current settings as the new default using the "Save as Default" option. However, proceed with caution, as this action will overwrite the original default values provided by Stock Algo that have been modified by the user.
Often, a support zone during a bearish move can transform into resistance if market sentiment shifts positively. Similarly, former resistance can evolve into a new support level.
By analyzing these trends using the Stock Algo Support Resistance indicator, you can gain valuable insight into potential future price movements.
Visibility: This setting is used to configure the display of time intervals such as seconds/minutes/ hours etc on indicator. It is strongly recommended to avoid making any changes to these settings.
