Topic: Support & Resistance As An Indicator?

What is the possibility of developing a Support & Resistance indicator?

(Note that I'm not asking for someone else to develop one...I have the potential to write it myself if I can conceptualize one. My programming skills are quite rusty, though, so it would certainly take some time.)

I'm not a fan of pivot points.

I've done extensive searches for S&R indicators. I've not actually used one. No available S&R is sufficient (and certainly none that can be used by EAs), but I believe there should be a way to create a decent one.

Below are a couple I've found; I'm posting them to share the ideas, not the indicators themselves.

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The most interesting-looking one I've found is not usable by EAs:
http://www.pointzero-trading.com/Products/view/PZSupportResistance

This indicator attempts to calculate the relative importance of various S&R levels, combining those occurring at close proximity to each other (based upon a degree set by the user).

It also notes how old those levels are.

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Here's another one that defines zones instead of specific levels:
https://www.fxtradingrevolution.com/supportresistance.html

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Thoughts on the feasibility of incorporating these ideas into an EA-friendly indicator?

ThanX!
John

Re: Support & Resistance As An Indicator?

John, I'm too lazy and tired at the moment to research your links, post the source of those indis, if they are available. I'll then take a glance and can offer my opinion.

3 (edited by qattack 2017-08-14 15:59:11)

Re: Support & Resistance As An Indicator?

footon: The first costs $149.

The d/l link for the latter is:
https://www.fxtradingrevolution.com/upl … s_2.98.ex4

EAs cannot interact with either of them.

It's not these actual indicators with which I'm concerned; it's the viability of developing something similar into a usable indicator. Perhaps the ideas behind them are feasible, but not well-executed. (Don't know, as I haven't used them.)

Re: Support & Resistance As An Indicator?

Hmm, no human-readable sources available...

Well, basically and principally everything is possible. Regarding FSB, a very good understanding of how it has to be coded is needed, otherwise one can see many holy grails in backtesting only to find out that the indicator has critical errors. I think most who have done indis for FSB have experienced it at first. One cannot forget some limitations of FSB, it's important to keep things light calculation-wise.

In conclusion, yeah, it's possible, but the devil is in the details (like with most things).

Re: Support & Resistance As An Indicator?

Yes, the purpose of starting this thread was to discuss how it might be achieved (if at all).

The first hurdle would be to determine how S&R levels are selected.

The second would be how those levels would actually be implemented to simulate how manual traders use them.

Re: Support & Resistance As An Indicator?

I think there are many SR indis available to MT, so why not take one of those as a base example and development can go on from there. Usually porting mq4 to FSB is the easier way, developing one from scratch can be time-consuming task with quite many trials and errors.

Re: Support & Resistance As An Indicator?

Hi,
Maybe 3-4 years back I got involved in automated trading because I wanted to test so badly some strategy with your second link posted indicator. Manual testing with strategy looked so good! It is called SD (supply and demand, based on Sam Seiden teachings) indicator, and you can find it in forexfactory and various other places with some strategy and indicator variations. I learn some mql4 skills and tested it with mt4 and found no edge, and I tried it hard! smile Of course with some filters and fsb, if you dig deep enough something would pop up.

How I can remember that indicator takes swing high/lows values from Zigzag indicator and extends a little bit to get zone with "base" candles.

Re: Support & Resistance As An Indicator?

indicator takes swing high/lows values from Zigzag

Be careful with the ZigZag indicator. It repaints the history and shows highly overestimated results. All indicators that use ZigZag (Fibonacci, Support & Resistance, ...) are potentially dangerous also. 
I've heard for a none-repainting ZigZag, but I've never seen one working.

Re: Support & Resistance As An Indicator?

Popov wrote:

indicator takes swing high/lows values from Zigzag

Be careful with the ZigZag indicator. It repaints the history and shows highly overestimated results. All indicators that use ZigZag (Fibonacci, Support & Resistance, ...) are potentially dangerous also. 
I've heard for a none-repainting ZigZag, but I've never seen one working.

I should show you mine, I guess wink it must be in my old computer, maybe I can locate it. Non-repainting zigzag, but the main problem with it was lag. Other versions exist also, which are non-repainting or non-recalculating, i believe they use user-defined leg length, hence if that length is reached, the leg gets drawn without recalculation.

Re: Support & Resistance As An Indicator?

Some time ago was thinking about support/resistance indicator. My best choice would be to take nearly 2 swing highs or 2 swing lows. Level where price reversed. And you get a horizontal line/price what you can trade with different logic: reversal on that line; break out; break out pull back etc.

Re: Support & Resistance As An Indicator?

Also support resistance can be not only horizontal, it can be trendline drawn from 2 swing highs and lows. I am studying two resources who uses trend lines successfully : https://www.amazon.com/Understanding-Pr … rds=volman
and https://www.youtube.com/user/PATsTrading . Not so sure if these manual trading methods can be programmed. However few trading setups using trendlines is pretty clear for me, but not taking context in mind can be dangerous. Probably (like always) there is only one chance to know if it works is to make it ant test smile

Re: Support & Resistance As An Indicator?

Ichimoku is support and resistance

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....