We are all well aware that market movements occur in the form of impulses and corrections. One of the postulates of trade in the forex market is as follows: trading on a trend, come from corrections. I.e. Each new position should be opened from a correction with the potential for further trend progress.
It is necessary to adjust its trade, given the fact that 70% of the time the market is in correction and only 30% in pulse movements.
Understanding how the correction develops, we take actions to close the current positions or open, add new ones.
The development of the proposed correction makes us think as follows:
Or we really develop a correction;
Or a trend reversal is trying to form.
To confirm the price stop, we must use additional tools. For example, such as support/resistance levels. This indicator was designed specifically for easier and faster trading. It displays specific correction levels.
Show Last - analysis accuracy, usually 0. The script checks the available time range. If you change this setting, you will be able to get even more accurate levels according to your working time frame.
Time range definition - list of М1 timeframes - Н1, etc., select true to activate.
Display settings are text display, color gamut of levels.
You can also place correction levels on a price chart.
Help in trade:
Given that the indicator shows the most significant levels, trade needs to be built on a sample or a reversal from the level. By combining with other elements of Forex 's technical analysis, you can build your trading strategy. We think the Bollinger lane indicator is good for you, too.