MA & SUPPORT RESISTANT INDICATOR

Moving Average and Support & Resistance Level Indicator

This indicator is a robust tool designed to enhance trend analysis and pinpoint critical price levels for traders. It automatically plots three exponential moving averages (EMAs)—21, 50, and 200—covering short-, medium-, and long-term perspectives. The 21 EMA (blue) tracks rapid price movements, the 50 EMA (red) identifies intermediate trends, and the 200 EMA (white) serves as a long-term trend anchor, as seen in the recent BTC/USD 4-hour chart. These moving averages provide a clear visual framework to determine whether the market is in an uptrend, downtrend, or range-bound state.

Complementing the EMAs, the indicator dynamically plots support and resistance bands (green for support, red for resistance) based on recent price highs and lows. These bands adapt to market conditions, marking key zones where price is likely to find support during pullbacks or face resistance during rallies—such as the recent support test around $86,000 and resistance near $90,000 on the chart. This combination allows traders to identify potential entry points, stop-loss levels, or profit targets with precision.

Practical Use and Confirmation with Other Indicators

Traders can use this indicator to time trades effectively. For instance, a bullish signal emerges when the 21 EMA crosses above the 50 EMA while both remain above the 200 EMA, suggesting upward momentum—ideal for entries near a green support band. Conversely, a bearish signal occurs when the 21 EMA crosses below the 50 EMA, with red resistance bands acting as potential shorting zones or exit points, as observed during the recent downtrend in the chart.

For added confirmation, pair this indicator with the Relative Strength Index (RSI) https://www.tradingview.com/script/utXNjY70-RSI-STOCH/, visible in the lower panel of the chart. When price tests a green support band and the RSI dips below 30 (indicating oversold conditions), it strengthens the case for a reversal or bounce. Similarly, near a red resistance band, an RSI above 70 (overbought) can confirm a rejection or trend continuation. This dual approach enhances reliability by aligning trend direction, key levels, and momentum, making it suitable for swing trading or scalping on volatile assets like BTC/USD.

Give this indicator a shot and let me know what you think—I’d love your feedback so we can improve it together!