ATR-Buffered Support and Resistance Channel with Candle Pressure Counts
Summary
This indicator defines resistance and support from the highest high and lowest low over a configurable lookback. It adds an ATR-based buffer around both extremes, plots the midpoint, projects the zones forward, and marks selected price crossings and the bars that set the window’s extremes. It also counts bullish and bearish candles in the lookback as simple measures of recent buying and selling pressure.
The accompanying guidance describes using the zones for range bounces, breakouts, and midpoint reversion, with the candle counts as a directional filter. It discusses adjusting lookback length, projection distance, and ATR settings, and recommends considering market regime and price structure. The document provides indicator logic and usage rules, but no backtest or evidence of trading performance. Candle counts are only a rough proxy for pressure, and the suggested signals may behave differently in trending and ranging markets. The description is therefore best read as a charting aid and a set of hypotheses to evaluate, not as a validated strategy.
Key ideas
- Recent highs and lows define the channel’s outer levels, with ATR setting the zone thickness.\nA midpoint provides a reference for possible reversion or trend support and resistance.\nBullish and bearish candle totals summarize recent direction but do not measure volume or order flow.\nThe document proposes bounce, breakout, and midpoint-reversion uses while noting regime and parameter risks.\nNo performance testing is provided for the indicator or its trade rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.