Q: Tips

- Use S1/R1 levels for intraday or scalping entries, S3/R3 for swing trade targets - Price reaching R3 or S3 is relatively rare — these are high-probability reversal zones - The midline acts as a pivot point — persistent trading above/below it indicates trend bias - Combine with volume analysis: breakouts of R/S levels on high volume are more reliable - MRC works well alongside traditional pivot points for confluence analysis - Consider the previous period's channel for initial bias at market op

Question 1

What is MRC?

Accepted Answer

MRC (Multi-Range Channel) is a multi-level volatility channel indicator that calculates three pairs of support and resistance levels based on price range analysis. It creates a hierarchical channel structure where R1/S1 are the nearest levels, R2/S2 are intermediate, and R3/S3 are the outermost boundaries. This multi-level approach helps traders identify different strength zones for potential price reactions.

Question 2

How it works

Accepted Answer

MRC calculates multiple support and resistance levels based on the range of price action over a specified period: ``` Range = Highest High(N) - Lowest Low(N) Midline = (Highest High(N) + Lowest Low(N)) / 2 R1 = Midline + Range * 0.25 S1 = Midline - Range * 0.25 R2 = Midline + Range * 0.50 S2 = Midline - Range * 0.50 R3 = Midline + Range * 0.75 S3 = Midline - Range * 0.75 ``` The levels are proportionally distributed within the price range, creating a structured grid of support and resistance zon

Question 3

Key features

Accepted Answer

- **Multi-level structure** — Three levels of support and resistance for different scenarios - **Range-based** — Adapts to current price range automatically - **Hierarchical zones** — Inner levels (R1/S1) for scalping, outer levels (R3/S3) for swing trades - **Symmetrical** — Equal distribution above and below the midline

Question 4

Buy signals

Accepted Answer

- Price bounces off S1 level (minor support hold) - Price bounces off S2 level (moderate support hold) - Price bounces off S3 level (strong support — deep discount) - Price breaks above R1 (momentum confirmation)

Question 5

Sell signals

Accepted Answer

- Price rejects from R1 level (minor resistance) - Price rejects from R2 level (moderate resistance) - Price rejects from R3 level (strong resistance — extended move) - Price breaks below S1 (momentum shift bearish)

Question 6

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of candles for range calculation |

Question 7

Sub-components

Accepted Answer

| Component | Description | |-----------|-------------| | `MRC_R1(20)` | First resistance level (nearest) | | `MRC_S1(20)` | First support level (nearest) | | `MRC_R2(20)` | Second resistance level (intermediate) | | `MRC_S2(20)` | Second support level (intermediate) | | `MRC_R3(20)` | Third resistance level (outermost) | | `MRC_S3(20)` | Third support level (outermost) |

Question 8

Example conditions

Accepted Answer

| Condition | Description | |-----------|-------------| | `close > MRC_R1(20)` | Price above first resistance | | `close MRC_R3(20)` | Price above outermost resistance (extreme) | | `close < MRC_S3(20)` | Price below outermost support (extreme) |

Question 9

Tips

Accepted Answer

- Use S1/R1 levels for intraday or scalping entries, S3/R3 for swing trade targets - Price reaching R3 or S3 is relatively rare — these are high-probability reversal zones - The midline acts as a pivot point — persistent trading above/below it indicates trend bias - Combine with volume analysis: breakouts of R/S levels on high volume are more reliable - MRC works well alongside traditional pivot points for confluence analysis - Consider the previous period's channel for initial bias at market op