A Wave-Range Proportion Indicator for Support and Resistance Zones
Summary
The document describes a chart indicator that derives support, resistance, intermediate levels, and a center line from the maximum and minimum of a daily range. It takes the difference between the endpoints, places an inner level at a stated fraction of that range, and uses the endpoints to set outer support and resistance. The midpoint of the range supplies a center reference. The intended output is a set of proportional price zones displayed in a lower chart panel.
The document provides an example formula but does not explain how the daily extrema are selected or updated, how the levels should guide entries and exits, or how the approach was evaluated. It reports no trading results or validation, so the levels are best understood as a technical visualization method rather than evidence of predictive value. The source also includes unrelated privacy text.
Key ideas
- The indicator uses the daily high and low as endpoints for a proportional range.
- An inner level is placed using a fraction of the distance between those endpoints.
- The range endpoints define outer support and resistance references.
- A midpoint line provides a central reference within the calculated zone.
- The document gives no backtest or rules for trading the displayed levels.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.