General – getting started
The Dynamic Support and Resistance indicator is unique, and to utilise it’s full potential, will probably require you to ‘rethink’ your whole approach to how you view and interpret support and resistance in the future. This is not to say that the underlying concept of support and resistance has changed with this indicator – it hasn’t. The old rules still apply where we are looking for areas of price congestion, which then define potential platforms of either support and resistance, which then either hold firm or are breached.
The game changer with this indicator, is not just how these levels are calculated and then displayed, but the accuracy of these signals. Most support and resistance indicators on the market today, will generally display some broad price range. To us, broad bands are of little use in whatever timeframe you are trading, when actually what you need are those price levels defined for you with pin point accuracy clearly on the screen. As you may have guessed, the Quantum Dynamic Support & Resistance indicator does not draw or display bands. It produces pinpoint levels to the nearest pip!
The second, and perhaps even more crucial point, is that as a trader, you need to have some gauge as to the strength or weakness of such price areas. After all, if the market is approaching an area which is considered strong, then the more likely the level will hold. This is another key aspect of the indicator – whilst it produces single lines to show areas of support and resistance, these signals are then given further power as the lines cluster together to signal stronger regions. Where one, two or perhaps three lines cluster, then this can be considered and extremely strong area of price support or resistance. In other words, clusters of lines add huge weight to these regions, which you can see for yourself, simply and easily. Now you have an indicator which not only displays these regions accurately, but then gives you that crucial information, the strength of these regions. Clusters hold the key, and wherever you see these displayed, you can be assured that the market will take effort to breach them.
Finally, and lastly, the indicator works dynamically, building these levels as the price action unfolds in realtime. This perhaps is the area that you will have to ‘rethink’ when using this indicator. Whilst the indicator is using historic price levels to gauge future price regions, it is also constantly scanning the current price action, to deliver support and resistance levels, IN THAT AREA, since this is the region of most interest to you as a trader. In other words, the support and resistance levels generated will coincide with the CURRENT price action. From there it is a simple case of then moving up and down the timeframes, to see where the longer term or shorter term support and resistance regions are on those charts, as well as searching for clusters.
It’s an immensely powerful indicator which maps out the direction of price at any given moment. For most traders, the profit that springs from trading, comes from determining support and resistance levels precisely. With this indicator, you can tell EXACTLY where and when price is moving up or down, thus giving you the ability to gauge:
- Optimum entry levels
- Safe exit levels
- Proper stop loss levels
- Excellent take profit levels
But as with all Quantum Trading indicators, there’s more, a great deal more!
The indicator makes no distinction between support and resistance. A certain price level that acts as support now can eventually be a resistance in the next session. Each line influences the movement of price for the entire chart;
- It is incredibly accurate – almost like magic
- The indicator is dynamic, which means the support and resistance lines generated coincide with the current price action
- Coupled with the Quantum Dynamic Price Pivots indicator, the Quantum Dynamic Support & Resistance indicator becomes even more powerful
In summary. This is a very different approach to the concept of support and resistance and one which may take you a short time to grasp. The key difference is that using this indicator, you will need to trade using multiple timeframes to maximise its power which will then reveal future levels for you further from the current price action, and the key points to bear in mind are as follows:
- Look for clusters of lines on the indicator. Where these appear then you can be sure this is a strong level of support or resistance
- The single lines of support and resistance give you precision trading decisions
- Use multiple timeframes to see levels of support and resistance further from the current price action. Remember, the indicator is generating these levels to coincide with the CURRENT price action (where this information is most useful!!!)
Finally, the indicator is entirely configurable for two reasons. First, all currency pairs have different trading characteristics and price chart profiles, and to reflect this, the indicator can be tailored to show a greater or lesser number of support and resistance levels. Secondly, this also allows you to tailor the detail to your own trading style. Some traders prefer more detail, other less. All of this is available for you to configure and explained below.
- The Quantum Dynamic Support & Resistance indicator works in all timeframes
- The default setting for the indicator is 180 BarsAgo (see below) which we have found is perfect for M1 to H1. For timeframes above H1, you will need to double this figure, and then double again for long term charts. This is explained below.
Open your MT4 platform and in the top level navigation:
- Left click >View
This will open the following window:
- Left click > Navigator
This will open the following window:
- Left click > + icon alongside Custom Indicators
This will open the following window:
- Left click and HOLD – drag the QuantumDynamicSupportAndResistance indicator to a chart, and RELEASE
This will then display the following window. This is where you can configure all the various user settings for your currency strength indicator. To move from one tab to another simply left click on the grey tab to select the appropriate window.
The Common tab displays two boxes. Both of these should be checked as shown. This ensures that you have enabled the DLL imports as explained in the installation instructions.
There is one value you can change with this indicator, and that’s the BarsAgo variable.
The BarsAgo function is used to define the number of bars or candles that the indicator considers when calculating and displaying the support and resistance lines on the chart. The default value is 180 which we have found from experience provides an excellent balance of levels, particularly in the faster timeframes from 1M to 1H. Above 1H you may find that you wish to increase the number of lines displayed and this is done using the BarsAgo value ( you can of course increase this across the faster timeframes if you wish). The value can be any whole number.
For the slower timeframes you may find that double this value up to 360 for 4H and daily charts, and then 720 for any longer timeframes will increase the number of support and resistance lines displayed, and you can then ‘fine tune’ it from there. Equally, if you have too many lines on your chart, simply halve the number and again fine tune it. To change this value:
- Double left click in the Value field
- The Value field will change to white – enter a number such as 360 and click return
There are no settings in the Colors tab to change. The colors of the lines and styles are defaulted to orange. They are best displayed on a chart with a black background.
There are no user inputs for the indicator.
These are the default settings for MT4. There are no user inputs for the indicator.
When you are happy with all your changes…
- Left click the OK button at the bottom of the window, and your Quantum Support & Resistance indicator will be applied to your chart
At this point your Support & Resistance indicator will look something like this:
Finally, to remove the indicator from your chart:
- Right click on the chart and the following pop up window will appear:
- Left click on Indicators List from the above menu and the following menu will appear:
- Left click the indicator, and then left click the Delete button on the right