Based on an Artificial Intelligence (AI) engine, the E.G. Trigger Point calculates support and resistance (S&R) lines. S&R lines are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.
The resistance level – indicated by a horizontal line, higher than the current market price; it is a price point on the chart where traders expect maximum supply (in terms of selling) for the asset. The resistance level is always above the current market price; The likelihood of the price rising to the resistance level, consolidating, absorbing all the supply, and declining is high → The resistance often acts as a trigger to sell.
The support level – is indicated by a horizontal line, lower than the current market price; it is a price point on the chart where the trader expects maximum demand (in terms of buying) coming into the asset. Whenever the price falls to the support line, it is likely to bounce back. There is a maximum likelihood that the price could fall until the support, consolidate, absorb all the demand, and then start moving upwards → The support often acts as a trigger to buy.
As part of our special service, each trading day has a unique set of trigger points (i.e., price levels); E.G. customers are getting updated every morning with a new set of price levels embedded in a NinjaTrader indicator.