If you're looking to sharpen your trading skills, let’s dive into the WSP and WRO indicators for MetaTrader 5. Based on Mel Widner's insightful article on "Automated Support And Resistance" featured in TASC, these tools are designed to help you make informed trading decisions.
First up, we have the WSO, or Widner Support Oscillator. This nifty tool compares the current closing price with the last six support levels. The values range from 0 to 100, where a WSO reading of 0 indicates that the current Close is below all six support levels, while a WSO of 100 means it’s above all of them. Essentially, any shift in the WSO signals a change in support—whether that’s the breaking of an old level or the establishment of a new one. Here’s how it’s calculated:
Now, let’s talk about the WRO, or Widner Resistance Oscillator. This works in a similar fashion but focuses on resistance levels. Again, the values range from 0 to 100. A WRO of 0 indicates that the Close is below all six resistance levels, while a WRO of 100 shows that it’s above all of them. Shifts in the WRO point to changes in resistance, be it breaking through an old level or setting a new one. Here’s the formula:
Both the WSO and WRO are invaluable for traders looking to identify key support and resistance levels quickly. Whether you’re a seasoned pro or just starting out, incorporating these indicators into your trading strategy can provide a significant edge. Happy trading!
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