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Horizontal Support & Resistance Lines

  • #1
  • First Post: Jul 13, 2007 3:05am Jul 13, 2007 3:05am
I currently use a very useful way of calculating support and resistance lines. These are based on seeing how many high,low & close in last x days fall within 2/3 pips.

To put another way what i am looking for are horizontal support & resistance lines which are made by 1 or more high,low & close which are very close in value (like 1 or 2 pips). So you look back say 20 days and see how many high,low and close are within 1 or 2 pips of each other (or % terms). This than forms a horizontal support or resistance line.

I find that this together with the price patterns from James16 thread is very effective for entry and exit.

I've looked everywhere but can't find any mq4 files which do this. Does anybody know of one please?

Thanks
Naj
  • #2
  • Jul 13, 2007 1:17pm Jul 13, 2007 1:17pm
  •  iya
  • | Joined Oct 2006 | Status: always protect yourself | 129 Posts
Sounds interesting, so I tried to put it together. Feel free to suggest improvements.

http://img66.imageshack.us/img66/548...supportuv0.png
Attached File(s)
File Type: mq4 Point SR.mq4   3 KB | 2,434 downloads
  • #3
  • Jul 13, 2007 4:35pm Jul 13, 2007 4:35pm
Quoting iya
Sounds interesting, so I tried to put it together. Feel free to suggest improvements.

http://img66.imageshack.us/img66/548...supportuv0.png
iya,

This is great, and certainly need improvement, a few ideas that come to my mind :
1. We need to look only for High and Low, Open and Close can be ignored
2. keep track who build the line, how many H or L are involved
3. if line consists of more than 2 H before and now turn as L, we put color as support, vice versa for resistance color
4. for debugging purposes, please put a little sign at H or L of related bars, so we can see how this indicator calculate values

After this, we need to watch out for spikes (1-2 bars), as it shouldn't count, and peak and trough, you can use short term MA slope and calculate it forward (as if already happens, which is why I think this indicator might be put as script).

Alright, we need to stay focus and experiment the manual first, at the end, I think, we need quite big tolerance, as this indicator or could-be-script can filter those unnecessary bars.

Again, thanks for sharing.
  • #4
  • Jul 13, 2007 6:03pm Jul 13, 2007 6:03pm
and what is the magic behind this? lol.

My 2 cents: If the major player are not watching these 'magical' levels of s&r chances are they wont make sense

Good effort though. But forex is so simple, do not make it difficult
100% of traders are losers. Just that some win more than they lose!
  • #5
  • Jul 14, 2007 8:56am Jul 14, 2007 8:56am
IYA,

A big THANK YOU. The script does exactly what I need and I don't need any improvements. This is just a supporting tool.


Demark,

Please think before you make knee jerk statements. Nowhere in my original statement did I write or imply that these are "magical" levels just that for ME they are effective. I also don't see how using these levels makes trading difficult or complicated. In fact I think they are a model of simplicity in looking at S&R. Essentially they are based on ideas from Market Profile. Although market price distribution is not Normal I like the idea of the point of control (POC) but using H,L & C.


Again many thanks to Iya for your help.

Naj
  • #6
  • Jul 14, 2007 9:11am Jul 14, 2007 9:11am
Quoting Mr demark
and what is the magic behind this? lol.

My 2 cents: If the major player are not watching these 'magical' levels of s&r chances are they wont make sense

Good effort though. But forex is so simple, do not make it difficult
Oooh .. I know many magical levels. It's the round numbers. e.g 1.3600, 1.3500. The more zeroes, the better.
  • #7
  • Jul 14, 2007 9:48am Jul 14, 2007 9:48am
Quoting Mr demark
and what is the magic behind this? lol.

My 2 cents: If the major player are not watching these 'magical' levels of s&r chances are they wont make sense

Good effort though. But forex is so simple, do not make it difficult
I believe James16 refers to these as price pivot points, which I have been using recently with some good success. I too find this to be quite simple and fail to understand what you find complicated here..

J
  • #8
  • Oct 6, 2007 2:24pm Oct 6, 2007 2:24pm
Quoting iya
Sounds interesting, so I tried to put it together. Feel free to suggest improvements.

http://img66.imageshack.us/img66/548...supportuv0.png

Goodday Iya,

It Seems to me the Point SR indicator is not working as suppose to be.

I had been looking for an indicator to draw trend lines between two

highs/lows (from high/low to another high/low).

Would you mind post, if you have, the working one.

Thanks in Advance


Rene
  • #9
  • Oct 9, 2007 9:58am Oct 9, 2007 9:58am
that is a very cool program\script iya!
"Please sir, may I have some more pips?"
  • #10
  • Oct 9, 2007 11:38am Oct 9, 2007 11:38am
Quoting J2FcM
that is a very cool program\script iya!

Hay J2FcM,

Do you mean Point SR is not an indicator?

Would you mind share your idea how to use a script ???

I'm totally zero knowledge about script.


Thank You in Advance,

Renefx
  • #11
  • Oct 9, 2007 11:51am Oct 9, 2007 11:51am
Hay to All,

I am puzzled with the attached Indicator,

It has 278kb memory consumption.

Where infact most of the indicator has only arround 10kb more or less.

Does anyone know how to use this attached indicator ???


Thank You,


Renefx
Attached File(s)
File Type: mq4 6.mq4   277 KB | 1,306 downloads
  • #12
  • Oct 10, 2007 10:26am Oct 10, 2007 10:26am
Quoting Renefx
Hay J2FcM,

Do you mean Point SR is not an indicator?

Would you mind share your idea how to use a script ???

I'm totally zero knowledge about script.


Thank You in Advance,

Renefx

No - I wasn't really trying to put a point across.. think of it more as "my own terminology" which is either due to 1 - not knowing a whole lot about MT4 other than basic functions or 2 - I tend to always use my own terminology.

If someone says its an Indicator it probably is. I just think of it as a script for S\R in my head... we'll leave it at that since I'm rambling now! (Im also 0 knowledge about script)
"Please sir, may I have some more pips?"
  • #13
  • Oct 10, 2007 11:45am Oct 10, 2007 11:45am
Quoting J2FcM
No - I wasn't really trying to put a point across.. think of it more as "my own terminology" which is either due to 1 - not knowing a whole lot about MT4 other than basic functions or 2 - I tend to always use my own terminology.

If someone says its an Indicator it probably is. I just think of it as a script for S\R in my head... we'll leave it at that since I'm rambling now! (Im also 0 knowledge about script)

Hay J2Fcm,

Thanks for your quick reply.

I wonder if someone could enlighten us about the
usefullness of Point SR indicator.

The Point SR draws lot of horizontal lines base on OHLC.

Please, Anyone could modify this indicator to change the
Horizontal lines to TREND LINES from high to high, Low to low bars.

Also a little summary to explain this indicator, from the thread starter.

Thank You All,

Renefx
  • #14
  • Last Post: Oct 11, 2007 11:54am Oct 11, 2007 11:54am
the usefulness of this program comes from its ability to quickly make a dynamic area of support and resistance. When you have that many bars stopping at the same resistance or support you can use that as a pivot point. I think its more useful than a trendline
"Please sir, may I have some more pips?"
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