A is a indicator, or calculations, used to determine the overall trend of the market over different time frames. The itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the is thought to indicate ongoing sentiment, while trading below the indicates sentiment.
The is the basis for the indicator, but it also includes other levels that are projected based on the calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction.
When the price of an asset is trading above the , it indicates the day is or positive.
When the price of an asset is trading below the , it indicates the day is or negative.
The indicator typically includes four additional levels: S1, S2, R1, and R2. These stand for support one and two, and resistance one and two.
one and two may cause reversals, but they may also be used to confirm the trend. For example, if the price is falling and moves below S1, it helps confirm the downtrend and indicate a possible continuation to S2.
This Script includes the Mid , Open and Close levels
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