The livelli_sr_now indicator for MetaTrader4 is an indicator that displays support and resistance levels. As you all know, the study of technical analysis is never complete without the mention of support and resistance level.
Hence the importance of this tool. The resistance level is drawn as a horizontal dotted DeepSkyBlue colored line, while the support level is depicted as a horizontal dotted tomato colored line.
Obviously, the support line drawn by the livelli_sr_now indicator represents the price mark where it is thought to be strong enough to halt price from further decline.
The logic behind this is such that a price dips towards the tomato colored dotted horizontal lines of the livelli_sr_now indicator, it would get cheaper and buyers become more willing to buy (while sellers are less persuaded to sell) – which possibly would get price back higher.
The livelli_sr_now indicator gives us this visual picture of this very important market psychological levels. Understanding that technical tools are not an exact science, the livelli_sr_now indicator can also be used in creating support and resistance zones.
This mean that instead of relying on a level, we simply consider price range as support or resistance zones. This can be achieved by mapping out two resistance levels (we can take two one resistance and the next above it) or two support level. In doing this, we should ensure that the zone range does not exceed 15 pips.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (ZigZagFast, ZigZagSlow), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month