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Need Best Support and Resistance Indicator

  • #21
  • Dec 21, 2016 9:01am Dec 21, 2016 9:01am
Quoting braintheboss
You only need filter big movement. Rest of areas are consolidation. Later you can do like capture ( range areas ) or take high/low of last 2 range areas for make an S/R tool. You are coder, I'm sure you will find ways to filter big movements {image} {image}
Very good and valid point.

Ranges are good places to find S/R zones.
But not small tiny ranges with low volume.
A valid range should contain trendy moves enclosed between it upper and lower edges.
These edged after true breakout act as S/R zone most of the time.
No guts, no glory
  • #22
  • Dec 21, 2016 9:10am Dec 21, 2016 9:10am
Quoting abokwaik
{quote} Very good and valid point. Ranges are good places to find S/R zones. But not small tiny ranges with low volume. A valid range should contain trendy moves enclosed between it upper and lower edges. These edged after true breakout act as S/R zone most of the time.
How you build and manage those range areas makes the different behaviors. But basis don't change. Big movements are breakout movements. And breakouts always happens between 2 consolidation areas. And classic support/resistance areas always take space between both range areas
Â
Evidently you can play with different rules for create a wide range of behaviors. But only with rule I told before you can make out of box tool ( you don't need use different settings for every pair ). It's adaptative
Try don't lose pants never...
  • #23
  • Dec 21, 2016 9:16am Dec 21, 2016 9:16am
Quoting abokwaik
{quote} Very good and valid point. Ranges are good places to find S/R zones. But not small tiny ranges with low volume. A valid range should contain trendy moves enclosed between it upper and lower edges. These edged after true breakout act as S/R zone most of the time.
Recent Example : USDCHF Daily

Attached Image (click to enlarge)
Click to Enlarge Name: USDCHFDaily-range.png Size: 55 KB
No guts, no glory
  • #24
  • Dec 21, 2016 9:23am Dec 21, 2016 9:23am
Surely the term "best" really depends on how you intend to classify identified areas of support and resistance areas?

For example what matters to you:

  1. How many times it been hit?
  2. Do you consider the area flipped (e.g. support becomes resistance or resistance becomes support) once its broken?
  3. What factors are you looking for to make a level valid e.g. one touch or many touches etc?

Personally I look for:

  1. Levels have recently flipped and hence have no touches.
  2. I consider time and price movement before the level is re-tested e.g. depth of swing etc.
  3. Levels with more than one touches I look for divergence (any momentum oscillator will do). Not

So in short .... What are the criteria you want this indicator to full fill?


9047.

  • #25
  • Dec 21, 2016 9:26am Dec 21, 2016 9:26am
Quoting abokwaik
{quote} Recent Example : USDCHF Daily {image}
First capture 5 days starting last day. Second capture 5 days starting fourth day. Take fourth day high channel line and first day low channel line and you have a S/R area. Or you can take channel lines extremes if you want include high/low prices. Same areas, different behavior depending rules
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_20161221-152214.png Size: 438 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_20161221-152256.png Size: 470 KB
Try don't lose pants never...
  • #26
  • Dec 21, 2016 9:35am Dec 21, 2016 9:35am
Quoting 9047
* How many times it been hit?
Yes.
The number of times price "bends" at these zones is an important factor.
But I am not interested in repetitive bends in a short time frame.
Price should "travel" a considerable distance after the bend.

Quoting 9047
* Do you consider the area flipped (e.g. support becomes resistance or resistance becomes support) once its broken?
Yes.
Price has memory and will continue to remember these zones.
Zones will be broken sooner or later, but they will continue to hold value.
The trading system that will use these zones, will not trade the zones, it will watch price action around these zones, and acts accordingly.
No guts, no glory
  • #27
  • Dec 21, 2016 9:54am Dec 21, 2016 9:54am
Not for a minute saying the market moves in 10% but all I am saying is it as to move, now if I can capture 10,20,30, % moves with a good sensible MM must have a chance to make a few quid, Braintheboss makes good sensible suggestions were to start my (grid) from cannot argue the point, but I am just as I say trying to play with Monthly, Weekly and Daily ranges
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD m5 (12-21-2016 1553).png Size: 97 KB
  • #28
  • Dec 21, 2016 10:05am Dec 21, 2016 10:05am
Quoting OAPDave
Not for a minute saying the market moves in 10% but all I am saying is it as to move, now if I can capture 10,20,30, % moves with a good sensible MM must have a chance to make a few quid, Braintheboss makes good sensible suggestions were to start my (grid) from cannot argue the point, but I am just as I say trying to play with Monthly, Weekly and Daily ranges {image}
Personally I don't like fixed levels like pivots or fibos because many times S/R levels are at different place and they take a single price point, not an area
Try don't lose pants never...
  • #29
  • Dec 21, 2016 10:05am Dec 21, 2016 10:05am
" Support and resistance". Not vertical lines and horizontal lines!.
  • #30
  • Dec 21, 2016 10:08am Dec 21, 2016 10:08am
Lines relative to time and " multi time frame".
  • #31
  • Dec 21, 2016 10:11am Dec 21, 2016 10:11am
For the time probably is moving average. Because probably the moving average measure the average price and l thinks is relative to force.
  • #32
  • Dec 21, 2016 10:15am Dec 21, 2016 10:15am
Quoting braintheboss
{quote} Personally I don't like fixed levels like pivots or fibos because many times S/R levels are at different place and they take a single price point, not an area
Quoting whateveridon
" Support and resistance". Not vertical lines and horizontal lines!.
Definitely, note that I used the term "zone" not line.
Zones I drew on the USDCHF daily chart are 20 - 30 pips wide.
And it is OK for the price to penetrate these zones, and rebound.
It is safer to trade the "bend" not the "touch".
No guts, no glory
  • #33
  • Dec 21, 2016 10:19am Dec 21, 2016 10:19am
Quoting whateveridon
For the time probably is moving average. Because probably the moving average measure the average price and l thinks is relative to force.
The problem with MAs, is that there are many (10, 20, 50, 100, 200, SMA, EMA, SMMA, LWMA ... etc).
What we need is something global, critical and so common.
No guts, no glory
  • #34
  • Dec 21, 2016 10:23am Dec 21, 2016 10:23am
Quoting abokwaik
{quote} {quote} Definitely, note that I used the term "zone" not line. Zones I drew on the USDCHF daily chart are 20 - 30 pips wide. And it is OK for the price to penetrate these zones, and rebound. It is safer to trade the "bend" not the "touch".
Your picture is clear. No problem. I answered OAPDave about use pivots or fibos. That approach intermediate levels haven't relationship with S/R levels or consolidation areas because are relative to 2 points. You can have more one S/R inside a fibo or pivot depending size of them
Try don't lose pants never...
  • #35
  • Dec 21, 2016 10:49am Dec 21, 2016 10:49am
The moving average could be critical. (I think the moving average are based in force essential about how to price moves) I think I do not know what you try to mean by "something global".
  • #36
  • Dec 21, 2016 10:53am Dec 21, 2016 10:53am
Quoting abokwaik
{quote} The problem with MAs, is that there are many (10, 20, 50, 100, 200, SMA, EMA, SMMA, LWMA ... etc). What we need is something global, critical and so common.
288 and 1440. EMA.

1440, number of minutes in a day.
1440x M5, number of M5 candles in a week.
288x M5, number of M5 candles in a day.


Backtest for Shitz n Gigglez.
Default - M1 - Triggering dynamic by price movement and time.
(a work in progress)

Attached File(s)
File Type: ex4 DTEMA.ex4   23 KB | 3,324 downloads
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  • #37
  • Dec 21, 2016 11:00am Dec 21, 2016 11:00am
The multiple moving average probably is the correct "way" for measure the price. Try using multiple moving average.
  • #38
  • Dec 21, 2016 11:03am Dec 21, 2016 11:03am
Quoting Magix
{quote} 288 and 1440. EMA. 1440, number of minutes in a day. 1440x M5, number of M5 candles in a week. 288x M5, number of M5 candles in a day. Backtest for Shitz n Gigglez. Default - M1 - Triggering dynamic by price movement and time. (a work in progress) {file}
I think l can not execute your indicator.
  • #39
  • Dec 21, 2016 11:08am Dec 21, 2016 11:08am
Quoting whateveridon
{quote} I think l can not execute your indicator.

Because it's not an indicator. It's an EA.


Place in MQL>Experts Folder.

Refresh.

Run BACKTEST on M1 time frame.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #40
  • Dec 21, 2016 11:15am Dec 21, 2016 11:15am
Be carefull guys you could be heading down the Murrey Maths route
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD m1 (12-21-2016 1711).png Size: 98 KB
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