About the Bounce Zone Indicator
The Bounce Zone Indicator for MT5 is built to identify high-probability support and resistance areas where price is likely to react.
It automatically draws colored rectangles directly on the main price window, allowing traders to focus on key reaction zones without manual marking.
Green rectangles represent support bounce zones. Red rectangles represent resistance bounce zones.
When price revisits these areas, it often produces a reversal or at least a tradable pullback.
The indicator uses historical price data and customizable lookback settings to detect important levels.
When combined with the RSI indicator, traders can confirm momentum and filter weaker setups.
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Bounce Zone MT5.ex5 Indicator (MT5)
Key Features
- Automatically draws support and resistance bounce zones on the main price window.
- Green rectangles highlight potential buying areas.
- Red rectangles highlight potential selling areas.
- Customizable lookback period and sensitivity settings.
- Combines effectively with RSI for momentum confirmation.
Indicator Chart
The Bounce Zone Indicator displays green support rectangles and red resistance rectangles directly on the price window.
In the example setup, price pulls back into a green zone and reacts upward. When price reaches a red zone, bearish reactions often follow.
Guide to Trade with the Bounce Zone Indicator
Buy Rules
- Wait for the price to touch or slightly move into a green support bounce zone.
- Confirm RSI is below 30 or turning upward from the oversold area.
- Enter a buy trade after a bullish candle closes inside or just above the zone.
- Ensure the overall market bias supports a potential upward reaction.
Sell Rules
- Wait for the price to touch or slightly move into a red resistance bounce zone.
- Confirm RSI is above 70 or turning downward from the overbought area.
- Enter a sell trade after a bearish candle closes inside or just below the zone.
- Ensure the broader market context supports a potential downward move.
Stop Loss
- Place the stop loss a few pips below the green support zone for buy trades.
- Place the stop loss a few pips above the red resistance zone for sell trades.
- Adjust stop distance based on volatility and time frame.
Take Profits
- Close buy trades when price reaches the next red resistance bounce zone.
- Close sell trades when price reaches the next green support bounce zone.
- Exit early if RSI reaches the opposite extreme level.
- Trail the position if momentum remains strong beyond the target zone.
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Bounce Zone MT5.ex5 Indicator (MT5)
FAQ
Can I use the Bounce Zone indicator on lower time frames?
Yes, the indicator works on lower time frames such as M5 and M15. Use tighter stops and RSI confirmation to reduce false entries.
What RSI settings work best with this indicator?
The default 14-period RSI is effective in most conditions. Shorter periods like 7 can be used for faster signals in scalping strategies.
Is this indicator suitable for trending markets?
Yes, it performs best when trading pullbacks within a trend. Focus on bounce setups that align with the dominant market direction.
Summary
The Bounce Zone Indicator for MT5 helps traders identify strong support and resistance bounce areas with precision.
It simplifies level identification and improves entry timing.
When combined with RSI, it delivers higher-quality trade setups by confirming momentum.
With disciplined risk management, it can become a reliable tool for bounce trading strategies.
