In this video I will show you two highly Advanced and accurate Dynamic support and resistance indicators

Introduction

These tools are very handy when analyzing price action and anticipating where the market might turn in the near future. For instance, a dynamic Sr indicator can help you determine whether a breakout is likely to hold or if a reversal is about to take place. Whether you’re a day trader scanning the markets for short-term opportunities or a long-term investor looking for the best time to enter or exit a position, these indicators will provide invaluable insights. So stick around, this is not something you want to miss.

Keltner Channel Bands

The first indicator is called Keltner Channel bands by Trading Wolf. The Keltner Channel bands is a volatility-based technical analysis indicator that creates a channel around the price of a security to offer traders a visual representation of the security’s normal price range. This indicator consists of three components:

• The middle line, which acts as a reference for the average price.
• The cloud, which is calculated by adding a multiple of the Average True Range (ATR) to the middle line. The upper cloud acts as Dynamic price resistance, and the lower cloud serves as Dynamic support.

The cloud adjusts as volatility increases or decreases, and it can change its color to reflect on how overbought or oversold the market is. A red or green triangle appears on the chart when a potential price reversal is signaled. It is important to note that not all signals have high accuracy, so a smart strategy is essential when using this tool.

Trading Strategy

A strategy focused on catching fake breakouts involves identifying a trend first. In a strong downtrend, the price usually breaks below the cloud, and the cloud turns green. By connecting the green triangles, you can determine the direction of the trend. The goal is to buy at fake breakouts to the downside when signs of bullish momentum are present. Moving the stop loss to break even and closing the position manually when the candle bar breaks above the upper cloud can help in managing risks effectively.

Reversal Bands and Signals

The second tool is a personal favorite, as it comes with various features that provide comprehensive information about the price. The reversal bands act as Dynamic support and resistance levels, while the signals are highly accurate, especially when price gets rejected by both Dynamic and fixed levels. This tool also includes a volume profile, which can be useful in making trading decisions.

Trading Method

A trading method involving searching for fake breakouts requires waiting for the price to break below a support level and touch the lower reversal bands. Buying on a Buy Signal after a bullish trend is shown on the dashboard can be a profitable entry point. Paying attention to the volume profile and setting a trailing stop loss can help maximize profits. Similarly, for short entries, spotting a fake bullish breakout and waiting for a bearish trend to be shown can lead to successful trades.

Conclusion

Advanced dynamic support and resistance indicators can be game-changers in your trading journey. By using tools like Keltner Channel bands and reversal bands with signals, traders can anticipate market movements and make informed decisions. These indicators provide valuable insights into price action, helping traders navigate the complexities of the financial markets. If you’re looking to enhance your trading skills and improve your profitability, incorporating these advanced indicators into your analysis can be a step in the right direction.