Meta Signals Support & Resistance | 4

8 Ara 2023The core feature of the Meta Signals Support & Resistance Indicator are automatically generated Fibonacci based horizontal support and resistance levels. Unlike the classic Fibonacci retracement tool where levels are generated by drawing from a high to a low or vice versa, this indicator incorporates a proprietary volume component. Support and resistance levels automatically repopulate as more price and volume data is collected.

The indicator defines the following:

1. Main trading range dictating general price structure (yellow).
2. Local trading range indicating current trading cluster (green and red).
3. Fib based trendlines dividing the main trading range into tradable support and resistance levels. By default, these lines are white and include the 0.786, 0.618, 0.5, 0.382, and 0.236.
4. Fib extension of main trading range, extending the range according to an adjustable fib ratio (orange).

Also included are a set of four adjustable moving averages with the default values being:

MA 1 - EMA 21
MA 2 - EMA 55
MA 3 - EMA 200
MA 4 - SMA 200

In addition to plotting the MA 1 and MA 2 lines, the area in-between is automatically shaded to help define the short-term trend:

Green - uptrend
Red - downtrend
Gray - indecision

Similarly, the area between the MA 3 and MA 4 lines is shaded to provide a visual representation of longer-term support and resistance zones.

The Meta Signals Support and Resistance Indicator works on any chart where both volume and price are plotted.