Dynamic Daily S/R's for Euro

Just a little experiment to watch for a few days

Questions will be fielded after a few days of live data. Thanks

just an historical shot from the last few days

a few pips adjustment on the closing candle, and all is set. Will take a look at tomorrows close.

End of day.

Neat looking indicator. Any chance you can attach?

Thanks.

Forexmoments,

The levels and shading are just hand drawn, no real indicator.

Here's tomorrow's levels.

note: with the weekend time gap, the model is not as accurate starting the week or after any time gap on the chart.

Todays end and a view for tomorrow.

Today's ending chart and tomorrows levels

I find myself in the position of not being able to daily update these when needed , so I’ll throw out the math for anyone who sees a benefit if they havent already figured it out and let this little experiment fade into oblivion.

Interjecting a little of my own personal thoughts here, moving averages used as support and resistance or crossovers are very subjective and lagging in my humble view, but what can be derived is a mean average. Now the only real values that this humble author would contend are noteworthy are those that have standard time measured increments, namely the day’s average. Being on an hourly 24 wma, 30 minute chart would be 48 periods, follow? Using the weighted averages gives up a better feel for the closing data.

In this chart of 15 minute bars, the 96wma is plotted, notice Euros tendency for mean revision after each move at the close of the day. Distribution of the daily move brings price to the mean.

The next days levels a are based off a 1% deviation of the ending level of the 96wma. Divisions of the resulting envelope are based on fib %’s of .382, .5, .618, 1 and 1.618 % of the mean. I would assume that .333, .666 or quarter divisions would work just as well, I myself like the fib’s.

The levels can be place and traded like traditional pivots, you will notice that the daily pivot will almost always fall very close to the ending 96wma value, I call it the dynamic pivot.

To note, this only works for Euro, I have tried on other pairs with little or no value.

Enjoy.

a