Support and resistance indicators

Support and resistance lines are effectively part of trend identification, but in this case, the market may be ranging – narrowly or widely – between certain price values. A line drawn through common upper prices is known as a “resistance” line, and the line through common lower prices is known as a “support” line. The importance of support and resistance lines is that: They identify upper and lower boundaries between which the price may range or “bounce” backwards and forwards. This feature allows traders to set stops just outside these values with some confidence, They can signal the start of significant trends when prices break through either line. These are called “breakouts” and the strength of the break through the line is important to note for potential signals.

Support/Resistance Indicators Useful in Forex?

Average True Range (ATR) Yes

Bollinger Bands Yes

Commodity Selection Index No

Envelope EMA Yes

Envelope MMA Yes

Envelope WMA Yes

Keltner Channel Yes

Modified Keltner Channel Yes

Moving Average (variable) Yes

ODDS Probability Cones No

Relative Volatility Index Yes

Standard Deviation Yes

Standard Error Bands No

STARC Bands No

Volatility; Chakin’s Yes

Volatility; Option No