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Technical indicator #2

Horizontal lines (support & resistance)

Support & Resistance

A horizontal line drawn at prices where the market has stopped many times. It isn't a technical indicator, but in practice it's the most widely used.

Importance★★★

TypeLines

Common settingsDraw at highs and lows where price has stopped many times

MT5（FUNDED7）You can draw it with the "Horizontal Line" tool

1A 30-second chat

JUDITHDoes a plain horizontal line really mean anything?

JADEIt does. Traders around the world remember prices where the market stopped before. Orders gather there, so price tends to stop there again

JUDITHI don't know where to draw it...

JADEAt first, one line each at a high and a low where you can see "price has bounced here many times" is enough. If you draw too many, none of them mean anything.

2Here's how it looks

A price where it stopped many times tends to stop there again: a price traders "watch"

3Just check this

How many times it stopped

The more times price has stopped there, the more traders are watching that line

Did it break through?

When price breaks through the line with force, it tends to keep moving that way (breakout)

Roles switch

A ceiling that price broke above often becomes a floor next

4Reading basics

▲ Sign it may riseBreaks above resistance, and that line becomes support → the rise tends to continue

▼ Sign it may fallPrice breaks below support and that line becomes a wall → the fall tends to continue

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

Horizontal lines also help you decide where to put your stop loss. If you place it just beyond the line, it's clear why you're cutting the trade there. Once you know the stop distance, you can choose a lot size so that one loss stays within your planned amount, which makes it easier to stay within the daily loss limit.

Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

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📱 Smartphone (iPhone & Android)

Tap the chart once to open the round menu, then Objects (オブジェクト) → "+" at the top (Add object / オブジェクトを追加) → Horizontal line

Tap where you want it on the chart (for Fibonacci, swipe from the low to the high)

Tap a line to select it and move it. Long-press → Edit object (オブジェクト編集) to change the color and more

To delete, use "Uninstall (アンインストール)" at the top of the Objects (オブジェクト) screen

💻 Computer

In the top menu, click Insert (挿入) → Objects (オブジェクト) → Lines → Horizontal line (水平線)

Click (or drag) on the chart to draw it

Double-click a line to select it, then right-click → Properties (プロパティ) to change the color and more

🔧 Numbers to enter (common settings)

✓

Where to draw

Highs and lows where price stopped many times

✓

Color

Change to an easy-to-see color

✓

Number of lines

Start with one line above and one below

Select a drawn line with a long press or double-click to move or delete it. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.