Support Resistance Major/Minor [TradingFinder] Market Structure

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🔵Introduction

Support and resistance levels are key concepts in technical analysis, serving as critical points where prices pause or reverse due to the interaction of supply and demand. These foundational elements in price action and classical technical analysis assist traders in understanding market behavior and making better trading decisions.

Support levels are zones where demand is strong enough to prevent further price declines, while resistance levels act as barriers that hinder price increases.

Support and resistance levels are divided into two main types: static and dynamic. Static levels are fixed horizontal lines on charts, formed based on historical price points, and are crucial due to repeated price reactions in these areas.

Dynamic levels, on the other hand, move with market trends and are often identified using tools like moving averages and trendlines. These levels are particularly useful for analyzing dynamic trends and identifying potential reversal points in financial markets.

The importance of support and resistance in technical analysis lies in their ability to pinpoint price reversal or continuation points. Professional traders use these levels to determine optimal entry and exit points and combine them with tools such as Fibonacci retracements or moving averages for precise strategies.

Detailed analysis of price behavior at these levels provides insights into trend strength and the likelihood of price breaks or reversals. By understanding these concepts, technical analysts can forecast future price movements and optimize their trading decisions using tools such as indicators and price action. Support and resistance levels, as a cornerstone of technical analysis, form the foundation for many trading strategies.




🔵How to Use

The Static Support and Resistance Indicator is a vital tool for identifying significant price zones in financial markets. It automatically detects major and minor support and resistance levels in both short-term and long-term intervals, enabling traders to analyze price behavior accurately and develop optimal entry and exit strategies.

🟣Major Long-Term Support and Resistance

Major Long-Term Support: The lowest price points recorded over long-term intervals that prevent further declines.
Major Long-Term Resistance: The highest price points in long-term intervals that limit further price increases.

🟣Minor Long-Term Support and Resistance

Minor Long-Term Support: Temporary halts in price decline within a downtrend over long-term intervals.
Minor Long-Term Resistance: Short-term zones within long-term intervals where prices react negatively in an uptrend.



🟣Major Short-Term Support and Resistance

Major Short-Term Support: The lowest price points in short-term intervals that act as barriers against sharp price drops.
Major Short-Term Resistance: The highest points in short-term intervals that prevent further price surges.

🟣Minor Short-Term Support and Resistance

Minor Short-Term Support: Temporary halts in price decline within short-term downtrends.
Minor Short-Term Resistance: Zones where price reacts quickly and reverses in short-term uptrends.



🔵Settings

Long Term S&R Pivot Period: Defines the interval for identifying long-term support and resistance levels (default: 21).
Short Term S&R Pivot Period: Defines the interval for identifying short-term support and resistance levels (default: 5).

🟣Long-Term Lines

Major Line Display: Enable/disable major long-term lines.
Minor Line Display: Enable/disable minor long-term lines.
Major Line Colors: Green for support, red for resistance (long-term major levels).
Minor Line Colors: Light green for support, light red for resistance (long-term minor levels).
Major Line Style: Choose between solid, dotted, or dashed lines for major long-term levels.
Minor Line Style: Choose between solid, dotted, or dashed lines for minor long-term levels.
Major Line Width: Adjust the thickness of major long-term lines.
Minor Line Width: Adjust the thickness of minor long-term lines.

🟣Short-Term Lines

Major Line Display: Enable/disable major short-term lines.
Minor Line Display: Enable/disable minor short-term lines.
Major Line Colors: Gray-green for support, gray-red for resistance (short-term major levels).
Minor Line Colors: Dark green for support, dark red for resistance (short-term minor levels).
Major Line Style: Choose between solid, dotted, or dashed lines for major short-term levels.
Minor Line Style: Choose between solid, dotted, or dashed lines for minor short-term levels.
Major Line Width: Adjust the thickness of major short-term lines.
Minor Line Width: Adjust the thickness of minor short-term lines.

🔵Conclusion

Static support and resistance levels are among the most critical tools in technical analysis, helping traders identify key reversal or continuation points.

This indicator simplifies and enhances the analysis process by automatically detecting major and minor levels in both short-term and long-term intervals. It allows traders to customize settings to suit their trading strategies and analyze different market levels effectively.

Using this indicator improves price action analysis, enhances market understanding, and identifies trading opportunities. Applicable to all trading styles, from day trading to long-term investing, it is an essential tool for technical analysis.

Combining this indicator with other tools like trendlines, Fibonacci retracements, and moving averages enables comprehensive analysis and allows traders to navigate financial markets with greater confidence.