Feature 5: PAT S/R
PAT Support and Resistance analysis tool can be useful tools for identifying key levels in the market without the need for manual analysis. While there are several indicators available our auto support and resistance levels gives the traders a view on the levels to trade.
PATAlgo Pro has different S/R level setup, the first one is based on the Pivots which will check the Pivot high and low and mark the respective support and resistance level. Just enable the indicator view in the settings as shown below.
Next one is the auto support and resistance level which takes the last x price action and currate the respective support and resistance levels.
The significance of a support or resistance zone increases when it is tested multiple times. The more times the price bounces off or struggles to break through a level, the stronger the zone is considered to be. It signifies that there is a higher concentration of buying or selling activity in that area. Once a support zone is breached, it often becomes a resistance zone, and vice versa. This concept is known as role reversal. Traders watch for price to retest these zones from the opposite side to validate their significance and potential trading opportunities.