Read the Midas Support and Resistance Indicator

How automatic levels appear on the chart

The indicator itself highlights all the significant levels, excludes human subjectivity and even shows the strength of the level - so you quickly understand which areas are key to the price:

• Green levels are support that prevents the price from falling.
• Red levels are resistance that prevents the price from rising higher.
• Weak levels are areas where the price is only deployed once; they do not always work.
• Strong levels are areas where the price has been held back and reversed twice or more; they act as key support and resistance.

Strong supportWeak supportStrong resistanceWeak resistance

The example of the daily chart shows how a strong level of support restrains the price many times, preventing it from falling lower, and each time the price makes a good rebound, reaching this level.

Knowing this level could have helped take profit on short positions and consider long positions after support held.

Weak support is when a price movement has formed a level but has not yet been confirmed by a rebound and is therefore considered “weak”.

Here, the price drop often slows down, there may be a rebound, but the chances of a reversal are lower than that of a strong support level.

The daily chart for the last four years shows how a strong resistance level restrains the price for years and breaks the uptrend into a downtrend as soon as the price reaches this resistance.

Knowing this level could have helped take profit on long positions and consider short positions after resistance held.

Weak resistance is when the price movement has formed a level, but it has not yet been confirmed by a rebound and is therefore considered “weak”.

Here, the price rise often slows down, there may be a rebound, but the chances of a reversal are lower than that of a strong resistance level.

How to use support and resistance levels

Price often moves from one level to another, and correctly identifying levels helps you see important market areas and find better entries and profit-taking points:

• When price reaches a level, watch where the candle closes: above it supports a bullish scenario; below it supports a bearish scenario.
• Open positions from strong levels, not directly into them.
• Consider taking profit as price approaches a strong level.

Rebounds to longRebounds in shorts

The daily-chart example shows how effectively the strong level produced repeated rebounds without additional factors.

The same chart had a resistance level all along: when it was reached, the price not only bounced back, but also turned around and went back to the support level.

Bounce and breakout: two level scenarios

Trading from levels is one of the most popular strategies in trading, which is ideal even for novice traders due to clear entry points, stops and goals:

• Bounce trading: in a weak trend or sideways market, find the strongest levels likely to produce a reaction, wait for the bounce to begin, and trade in its direction.
• Breakout trading: in a strong trend, wait for price to break the level and then retest it from the other side before trading in the breakout direction.

A level-trading workflow for beginners

Use signals together with horizontal support and resistance: when price bounces from support, wait for a Buy signal and open a long; when price bounces from resistance, wait for a Sell signal and open a short.

• It works best in the trend direction and in sideways markets on higher timeframes.
• Against the trend, consider only small bounces with short targets.
• Experienced traders can open trades earlier without waiting for the signal.

Advanced confirmation around a level

We use horizontal support and resistance levels along with the price channel, moving EMA, horizontal volumes and the heat map of liquidity:

• You do not need to wait for the coincidence of all factors - only 2-3 are enough.
• The more coincidences, the higher the chance of working out the signal.
• It works best in the current trend direction and in sideways markets.

1. 1

   Level matching

   We look for strong horizontal levels on the chart, which coincide with the boundaries of the price channel and horizontal volume shelves.

2. 2

   Confirmation

   Confirm the level with a nearby EMA or an accumulation of liquidity from stop orders.

3. 3

   Signal entrance

   When the price approaches an important support area, wait for the Buy signal and open the long; when it approaches an important resistance zone, wait for the Sell signal and open the short.