Fine definition of important levels can become the basis for profitable trading. You can do this yourself, or you can use the appropriate techanalysis tool. It will build levels that will help you make trading decisions. Tonight I’ll tell you about this tool. This is the Supdem indicator. Its advantage over other indicators of this type is that Supdem draws on the chart not only the levels that the price has already tested, but also those that can become support or resistance.
Installation and adjustment of the indicator
When it comes to installing the indicator in MT4, it is done according to the standard scheme. I described it in the article “Metatrader 4 cheat sheet”.
Parameters that can be seen in the settings relate to the visual display of the indicator lines on the chart. They shouldn’t cause any trouble. The only important parameter is Forced. It allows you to specify the indicator, which timeframe to work with. At the same time, the built levels will be displayed on all time intervals. The Drawzones parameter is used to turn the indicator on and off. This can be useful if you have several theanalysis tools in your trading strategy.
And now let’s move on to the most important question: how to use the Supdem indicator in trading.
Trade order opening conditions
For the beginning, let’s see what the indicator looks like on the chart:
Buy deal is opened if the price has tested the support level for the second time (red) and fought it off.
With sales we arrive accordingly. Only price should re-test resistance level (green).
To make it easier to track the signals, the indicator draws a transparent rectangle when the price touches the level again.
In other words, the colored rectangles only indicate that the level has formed. But he’s too weak to enter the market. The signal to open an order is the appearance of an unpainted rectangle. It indicates a strong level.
Stop-loss is placed several points above/below the signal level, and take profit is placed near the opposite level.
In my opinion, the Supdem indicator can be a very useful addition to the working trading strategy. With its help it is possible to make sure that the signal, which is given by the trading system, really deserves the trader’s attention. Of course, first you need to get good statistics in demo trading.Indicator can be downloaded from this link:SupDemFyodorov’s Inga16.01.2019