Support Resistance Indicator
Watch the testing video here:
Support and resistance is one of the oldest technical analysis methods that traders use whether as a Forex trader, Futures trader, or any other market.
Whether a horizontal support and resistance indicator is used or they are manually plotted, they are often pivot points in the market and traders should be aware of them.
Moving Averages and Dynamic Support and Resistance
Traders will use a moving average indicator as part of a trading strategy and believe they offer support and resistance levels that are dynamic. The truth is that moving averages do not support the price level.
EMA CALCULATION
Since moving ave are derivatives of price as most indicators are, they lag price. When you think that a moving average is acting as a support and resistance indicator what you are really seeing is the moving average catching up to price.
