Ruthless Support and Resistance Conformation
The Ruthless Support and Resistance Conformation (SRC) indicator is designed to identify and confirm support and resistance levels in the price chart. It utilizes an exponential moving average (EMA) and calculates the angle between the current EMA value and a previous EMA value over a specified length.
The indicator visually represents the conformation of support and resistance levels by plotting colored backgrounds on the chart. When the angle of the EMA surpasses the upper threshold, indicating a strong upward movement, the background color turns red. Conversely, when the angle drops below the lower threshold, indicating a significant downward movement, the background color turns green. In areas where the angle remains within the thresholds, the background color is set to a lighter shade.
Traders can utilize this indicator to identify potential areas of support and resistance based on the conformation of the EMA angle. The upper threshold can indicate potential resistance levels, while the lower threshold can indicate potential support levels.
To provide additional clarity, the indicator also includes horizontal lines representing the upper and lower thresholds on the chart, allowing traders to visually gauge the conformation against these levels.
Please note that this indicator should be used in conjunction with other technical analysis tools and indicators to make well-informed trading decisions. It is recommended to customize the length, thresholds, and other parameters of the indicator based on individual trading strategies and preferences.
The indicator visually represents the conformation of support and resistance levels by plotting colored backgrounds on the chart. When the angle of the EMA surpasses the upper threshold, indicating a strong upward movement, the background color turns red. Conversely, when the angle drops below the lower threshold, indicating a significant downward movement, the background color turns green. In areas where the angle remains within the thresholds, the background color is set to a lighter shade.
Traders can utilize this indicator to identify potential areas of support and resistance based on the conformation of the EMA angle. The upper threshold can indicate potential resistance levels, while the lower threshold can indicate potential support levels.
To provide additional clarity, the indicator also includes horizontal lines representing the upper and lower thresholds on the chart, allowing traders to visually gauge the conformation against these levels.
Please note that this indicator should be used in conjunction with other technical analysis tools and indicators to make well-informed trading decisions. It is recommended to customize the length, thresholds, and other parameters of the indicator based on individual trading strategies and preferences.