Here we take a look at the support and resistance indicator for Metatrader that helps traders identify key levels in the market that price is likely to head for. The indicator automatically draws in key support and resistance levels from the daily, weekly and monthly timeframe, meaning you no longer have to manually find those levels and keep adjusting them on your charts. When trading, you will notice that price moves to and from support and resistance levels constantly and creates large strong moves called propulsion candles which act as easy targets for price to retrace to.

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Video Transcript

So, let’s take a look at the support resistance propulsion target indicator. What I’m going to do is go through all the settings for the indicator and show you exactly what it does. We’ll go through everything one by one and then obviously as you can see here on the chart we’ve got everything turned on at once so you can see what everything does. So, let’s start off with the basics. The indicator has lots and lots of inputs. You can turn on all of the specific parts of the indicator using these true false settings at the top. So this says show these indicators. So basically if you set these to false it will turn off all of those particular parts of the indicator. As you see there’s five or six, well there’s six main parts to the indicator. First one is to show your trade history on the chart. This will automatically plot your previous trades that you’ve taken on the chart for you.

So you can see where your previous trades have been. This is handy if you want to analyze your trading after the trade has completed to see how well you entered and exited the positions. So that can be turned on and off as you deem fit. Second part, as you can see here, is to show the symbol and timeframe on the chart. That displays this area up here which basically shows you the symbol that you’re trading and the time frame that you’re currently on. And there’s also a note that you can put underneath. We’ll go through those settings in a second. We’ve got the show break even line on the chart. That shows this green line that you can see down here which is going along there. So that is basically your current trade level and that’s the average price or the break-even price. So if you’re doing position trading as I do or dollar cost averaging techniques where you’re entering into multiple trades in a single direction, this will show you the average price of your trade rather than just each individual entry on the chart. The next bit we’ve got is the propulsion gaps on the chart. So the propulsion gaps are these areas here that you can see that are highlighted in grey and in blue.

Grey are the old propulsion gaps and blue are the untested propulsion gaps. I’ll go through those in more detail but as you can see propulsion gaps are what the market moves from and to. So these are awesome targets for you to use in your trading so you know which direction price is likely to head. We’ve then got the support and resistance lines so there’s different types of support and resistance lines. We’ve got the daily ones which are in the blue dotted ones here. We’ve got weekly which are shown in black and then we’ve got the purple ones here which are the monthly. These are all completely configurable but I’ll show you all about those in a second as well. And then we’ve got the show candle timer on chart setting and that is down in the bottom left hand corner here. So this just shows you how long is left on the actual candle for the time frame that you’re looking at. So that’s everything that the indicator does and as you can see as you switch between different instruments you’ll see that everything updates.

So the trades taken update on the chart, propulsion gaps, support resistance automatically updates for you and the time frame updates as well and the symbol. So if you switch over to the 15 minute time frame you see that that changes to M15 up there. So what I’m going to do is I’m going to start off by just looking at the main points of the indicator. So I’m going to turn everything off on here and we’re going to start by taking a look at the propulsion gap targets. So turning everything else to force, which basically turns off everything on the chart apart from the propulsion gaps. So just to explain what propulsion gap targets are and why they’re so useful in your trading. A propulsion gap target or a propulsion candle gap target is where we have a very strong move in the market where the market moves very, very quickly in one direction and then it doesn’t trade back completely and fill the candle that it just created. So you can see here we’ve got an example where price pushed down very very hard and then on the next candle it pushed up ever so slightly and then pushed down hard again.

What that leaves in place is what we call a propulsion gap candle and a propulsion candle is just a big strong move in one direction. The gap is what is left behind when price doesn’t trade back up. So as you can see on this particular chart here, we’ve got lots of propulsion gaps in place. So the grey ones are the old propulsion gaps where price has made the gap and then it’s traded back and completely filled the area that it had previously gone to. So as you can see in this case here, we had a propulsion gap formed there, we had another propulsion gap formed there, another one formed there. And basically those are left in place until price comes back and trades into that area. As you can see it came up, hit that propulsion gap there and then pushed away. Same here, we pushed up, made a propulsion gap there, price pushed away from it, came back down, filled that gap and then pushed off again. So there’s two ways you can use these propulsion gaps. First of all, you can use them as bounce points. A lot of the time when price has pushed away from one of the propulsion gaps, it will push back up, hit that gap again, and then bounce off of it. So you can use it as an entry, use some kind of price action entry so that you can get into a trade and trade away from the gap once it’s retested it. The other main reason that I personally use propulsion gap targets is as a target. So we know that price comes back and retests these levels over and over again.

As you can see, every time there’s a propulsion gap put in place, sometime price comes back and retests that area, revisits these areas over and over and over again. So if we know that price is going to do this and it’s going to revisit these areas it makes logical sense that when we’re getting into trades we should be targeting these areas for our exits. So for example where we’re sitting right now on this chart there is two options in play now. The market could either drive short and come down and complete this gap here. This one here is ever so slightly left open but it has already retested that quite a lot. So you could class that one as already completed. However, this one, we haven’t really come back and tested this area at all.

So this would be where I was gonna go, if I was gonna get into short in the market now, this is where I would tend to head down there. If I’m gonna go long in the market now, I’ve got multiple targets to the upside here. I’ve got this one, which is really, really close for a quick scalp. I’ve got another one here, and then I’ve got three more up at the highs up there, towards the high of last week, or the high of this week, depending which day this is.

So if you’re gonna go long, you can target the area there. If you’re gonna go short, you can target the area there. Obviously, we never know which way price is gonna go, but we do know that price will come and complete these as it always does. So it gives us a really good idea of how far price is likely to travel in each direction, giving us an easy way to set our stop losses and our take profits in the market with a good risk to reward ratio. So if you wanted to go long right now, you could go long and you could place your stop under this level here, here, or even down there, knowing that there’s a high probability we’re going to come back up all the way up to there. If you were going to go short right now, you could enter the short there and set your stop above there, knowing that there’s a very high probability we’re coming all the way down there. You could even then choose to put your stop a little bit further away to give price a little bit of time to move in this area before it comes down there. So there’s lots of ways you can use these. The most successful propulsion gaps that I’ve found, which are the ones I use most of the time are the hourly’s. So as you can see this is an hourly chart here we’re looking at the euro pound. As you can see there’s lots and lots and lots of propulsion gaps which are grey here which means the price has created the propulsion gap with a very fast move, pushed away from it and then came come back to revisit it at a later stage.

can be anything from a few hours to a few days and sometimes it may take a little bit longer. You also get occasionally what I call an orphaned propulsion candle gap and basically these are areas where price has never come back to retest. These are possible targets for the future but as prices move such a long way away from them every now and again you’re going to get these where there’s a fundamental shift in the market and the market moves away from these areas and never actually comes to revisit them again. So you never know a hundred percent whether they’re gonna get filled, but as you can see on the chart here, the vast majority of the time, these gaps are always retested.

And often when price pushes back to them, it acts as a resistance or a support area as well. So you can use them as entries and exits and targets as well. So the gray ones here, as you can see, are old propulsion gaps. All of them have been filled. And right now in play, we are sitting inside this very big one here, which was caused by a news event this week with an obvious target to the downside, upside, and another one there.

So regardless of which way you want to get into the market, whatever system or strategy you’re using, you always need to find a target, an area to get out of the market. Propulsion gap candles are fantastic for using for that particular purpose. And as you can see they appear on all time frames and they work on all time frames as well. Okay, so that’s propulsion gap targets. The second part of the indicator we’re going to look at is support and resistance. So I’m going to turn off the propulsion gaps for the moment, and I’m going to turn on the show support resistance lines. So as you can see on my chart now, the indicator has automatically drawn in the most recent support and resistance areas.

So if I flick out now onto the hourly chart, you can see that we’ve got multiple lines on the chart now. We’ve got these light blue lines here, which are the dotted ones, and these are yesterday’s high and low and the previous day’s high and low. So if you’re trading low time frames like the 5 minute chart or the 1 or the 15 minute chart, these are areas which will quite often get retested and price will bounce away from, or it will just slightly exceed those levels, do kind of a little stop run on those levels and then move away from them.

These are the most recent and the strongest support and resistance areas for intraday trading So when we move up to those zones, they quite often will be areas that price will react that Moving out a little bit further. We then have weekly highs and lows So as you can see these black lines here are Placed on the high and the low of the previous weeks and again, these will act as support and resistance levels Over and over again. You can see where we moved here up and then bounced away. This was a previous weekly resistance area, which we respected and then bounced from again. So price moves from support to resistance, support to resistance over and over again.

We know this, we can see this on the chart. It’s something that’s happened for all time and it will continue to do so. So this automatically draws in the weeklies, the monthlies and the last two days for you so you can get a good idea of where the most recent strongest support resistance levels are likely to be and when we get back to older levels where price is likely to react somewhere around that area you can be aware of those and these areas you can target so if you’re going long in the market, there’s a good chance that we’re going to push up into this area here. And if that happens and it bounces off of it and then pushes and exceeds that level, the next area we’re likely to move to is going to be another previous high, which would be that monthly level there.

You can adjust these. So if we go into the settings, you can show the daily or hide the daily. You can show and hide the weekly and the monthly levels. You can extend the levels to the right or not. So if I set that to false, you’ll see that it will redraw those lines and it will just stop at the hard right edge of the chart. And you can also change everything about the colors of them. So you can have a different color for the high and the low line. You can adjust the width. You can adjust whether it’s a dot style, a dash dot style, solid, etc, etc. And you can do that for each of the types of support resistance. For the weekly and the monthly levels, you can also set how many lines back you want to see. So how many weeks ago you want to go back and how many months you want to go back. The maximum is 6 so it will only ever go back 6 weeks or 6 months at a time, however if you do that you’re probably going to find that you get far too many lines on your chart. So you can adjust this as fine tune as you see fit, but as you can see it’s quite handy to have lots of lines on there, it does make it a little messier, but you can see how price has moved between these levels over and over and over again.

Support resistance is an incredibly powerful thing. So the more lines you have on there the more areas you’ve got that price may respect in the future but obviously the more clutter you have on your chart. So that’s all completely fine tunable for you and you can change that as you see fit. Personally I like to have the last three weeks and the last two months showing on my chart. That keeps the levels, the chart fairly clean but also shows me those key highs and lows that I need to be aware of in the market where around the price that we’re actually trading at the moment. Okay so that is your support resistance levels and again if I zoom in a little bit more and go down to the daily chart, you’ll be able to, sorry, to the 15 minute chart, you’ll be able to see those daily ones a little clearer.

So that’s yesterday’s high there, that’s yesterday’s low there, that is the previous day’s low there and the previous day’s high there. The reason it shows these two is because these are the ones that get reacted usually the most on an intraday basis because these are where prices move to and turn from on the most recent couple of days in the week. After that, when we go back to three days plus, you tend to then pay attention more to the previous weekly highs.

As we saw there, that reacted and beautifully bounced off of it. So you don’t really need to go back more than two days on the daily, but then you start paying attention to the weekly lines. Okay, so that is the support resistance. Next, we’re gonna take a look at the show history on chart. So if we turn that to true, I’m gonna turn off the support resistance lines for the moment.

Okay, so as you can see now, all of my previous trades I’ve taken have been plotted on the chart here. So if you zoom out, you can see that there’s multiple trades been taken. This was a short position that I took and scaled out with a loss on, and then I took another short and another short there and exited those positions. So it just plots automatically on the chart for you your previous trades. This is really handy, as when you switch between your different instruments, you can see the previous trades you’ve taken and it helps you to analyze how good you have been with your entries and your exits. So you can see with these trades here that I’ve taken recently, that was a pretty good entry there. It pushed up and I got a pretty good exit on that trade as well. So as I took that exit, price pushed back down, but it did push up an awful lot further. So I missed roughly half of that trade. This one here, I took a nice little long there. It pushed down, not a lot of drawdown, pushed up and I exited and then again it went into an accumulation for a couple of days so that was probably a good exit. However, if I’d have held I would have seen that it would have gone an awful lot further. This one I took a little short, as you can see I’ve still got that trade running at the moment and I’ve taken a little bit of that off because it’s pushing against me.

So you can see all of your current trades and anything that’s closed on, partially closed or fully closed we plot it automatically on the charts for you. The other feature I’m going to cover now as well which is basically related to the trades is the break-even line. So the break-even line, I’m just going to quickly turn that one on. With the break-even line, what that will do is it will draw on the actual average price of any positions you have on the particular instrument. So as you can see on this one, the Aussie dollar Swiss, I haven’t got any trades on at all. We switch back to the Aussie dollar CAD, you can see that I’ve got one position on at the moment, which is a cell. So it’s drawn in red because it is a cell order. And you can see down in the bottom right hand corner here, it shows the pip count. So it shows me how many pips in profit or in draw down I am on that particular instrument. So if you flick through, you’ll see I’ve got a cell on here.

And on this particular position, I’ve got three cells at the moment. And the average of the three is there. So it shows me where the average price of all the positions I have on at the moment. So this is why I call it the break-even line. So when we get back to this area, it means that I am going to be at break-even, no profit, no loss. And you’ll see, obviously, the total pip count there that I’m currently in drawdown on the position.

If you are a hedger or you have multiple trades on in different directions, because your strategy uses a wide stop loss, for example, it will automatically plot both of those for you and it will show you the average of all of your positions. So here, for example, on the US dollar CAD, I have two positions on at the moment. I’ve got a few long positions on. That is the average long price and I’ve got a sell position on there and you can see that’s the average sell price.

So the sells are in red, the buys are in green. In the bottom right-hand corner, you can see that I’ve got plus 28 bids running at the moment on the buys and negative 40 running on the sell order. So if I scale out now, you’ll be able to see all of those orders in play. So there’s a by there, a by there, and a by there, meaning that the average of those three positions is there. And then I have the one single cell order on there.

And obviously that’s just got one order, so it draws the red line on that particular cell. So that’s your break-even line, which basically plots all that information on the chart. But you can also, with the break-even line settings, you can change the color, you can change the width of the settings and with these down here you can change the positioning of those. So we can say that we want this to appear in corner 2 for example instead of corner 3. Corner 2 is down in the bottom left so when you’re looking at corners that is corner 0, corner 1, corner 2 and corner 3.

That’s how MetaTrader decides where it positions text. So that is now set to corner two and if you want to you can hide this text if you don’t want it at all. If you just put a negative in front of one of these that will move that text off the chart. As you can see it disappears off the chart and if you want to get it all off the chart you could set the other one to minus 25 as well and that will just make everything disappear from the text perspective. Okay so that’s a rundown of those. The only other features we’ve got to look at are very, very simple. I’m just going to turn those two off and we will take a look at the symbol and timeframe on chart and we’ll take a look at the candle timer as well.

So again, with these, you’ve got the option to choose which corner they appear in. So with a symbol on chart settings, you can say I want that to appear in corner 0, 1, 2 or 3. You can set the axis offsets, you can change the color of the text, the font size of the text, and there’s two areas of text. One is a chart note and one is the actual instrument and timeframe that you’re trading.

So those are all changeable. And with the candle timer, again, you can choose the corner, you can choose the font size and you can choose the color. So I’ll turn those on. And we can see that that’s appeared in the top right-hand corner. And all this does is it just shows you what you’re trading and what timeframe you’re currently on. There’s this note here you can use for any purposes you like. I use it obviously for marketing purposes just to put the website address on there.

So, but really if you’re using any kind of screenshotting software, or you have an EA that takes screenshots automatically for you when you take your trades, this is quite a handy function to have so that when you’re looking at your screenshots, you can clearly see when you’re doing your analysis on your trades, what instrument and timeframe it was that that trade was actually being taken on. So that’s one of the reasons that’s there.

And obviously if you do any kind of streaming or you record any videos of any kind, it’s handy for your audiences as well so they can see that information. Down in the bottom left-hand corner, we’ve got the candle timer. Very simple. All this does is it counts down how long is left before the next candle closes. I’m just going to make that a little bit bigger so it’s easier to see down there. So let’s increase the font size to 25, for example. There we go. So you can see there’s 7 minutes, 23 seconds left. This is a 15-minute candle. If we drop down to five minute chart there’s two minutes left on this candle drop down to one minute there’s 14 seconds left so all it’s doing is it’s counting down how long it is until the candle closes particularly useful if you’re doing analysis on either the one hour or the four hour time frame and if you’re the type of trader as I am who waits for the candle to close before they take a trade so we’re waiting for a confirmation of that price action to be complete we need to know whether or not we should be taking a trade now or whether we’ve got a long time to go on this candle so on the four hour chart here I can instantly see there’s another hour to go before this candle actually closes so I don’t want to be making any trading decisions based on how this candle looks at the moment because in another hour’s time it could look something completely different. So candle timer will help you identify how long there is for candle close before the next candle closes. Also useful for people that are scalping on the M5 time frame. So you can see we’re getting some price rejection on the US dollar CAD here at the top at the highs. So if this candle turns into a bearish candle I may be interested in taking a short but I want to wait until this candle is closed and complete before I do that. So that’s what the candle timer is designed to do. Okay so that’s an overview of the indicator in total. I’m just going to quickly cover the propulsion gap settings. Okay so I’m just going to turn everything else to force. So the propulsion gap on chart settings you can see you’ve got lots of different settings here. I’m going to go through these quickly just so you get an understanding There’s only a couple.

The bars back to show is set to 1,500 as default. So if I just come out on this time frame, let’s go to a higher time frame so we can see. What this does is that 1,500 candles, it counts back 1,500 candles. And that is where it starts to do the calculations for the gaps. So it’s somewhere around there actually on this one. So that’s 1,500 candles in the past. That’s where it will start to do its calculations from. If we change that to something like 300, you’ll see that that will now redraw only from there. So we’re going back 300 candles on the time frame that you’re looking at. Also, we can change the color. So this is the gap target color is set to sky blue at the moment. The completed gap color is set to Gainsborough. If you wanted to change the completed gaps to be a lighter green and the targets to be a dark green, you can also do that as well. So it just customizes it to whatever chart that you’re using. So these are the lighter greens and these here are the darker greens. And the only other setting we have in there is the candle strength.

So the way this indicator works is it looks at the relative strength of the propulsion handle that is drawn. And it looks back at the previous candles to see how strong that was compared to the previous ones. So the candle strength, basically, if you have it set to zero, it will draw every propulsion gap that is appearing in the market. And that is the way that I like to use it. However, if you wanted to, you could play around with the signal strength setting here and change it, and you’ll find you’ll get slightly different propulsion candles drawn.

The ideal propulsion candle is one where you have an accumulation of price, and then price pushes hard and breaks that level. So it’s basically a breakout candle. And the reason it comes back and retests those areas is because it usually finds support and then bounces away. So if you adjust those settings you’ll find that you’ll get slightly different candles drawn or different propulsion gaps drawn. You see some of the older ones there have disappeared that were there before. But you can play around with that and fine-tune it as you see fit. Personally I like to see everything on my chart and then I can make an educated educated decision based on my analysis as to where price may be going.