Automating Support and Resistance Strength with Pivot Zones
Summary
The article presents an MQL5 indicator intended to automate the drawing and classification of support and resistance. Its method scans a configurable number of candles for extreme turning points, then looks for additional tests near those prices, using a five-pip proximity rule described in the text. Qualifying touches form rectangular zones with adjustable height and horizontal extension. The indicator distinguishes stronger zones from weaker levels visually and can provide terminal or optional push alerts at a configurable interval.
The author illustrates the motivation with examples from a synthetic volatility index, a technology stock index, and EUR/USD, noting that market conditions may trend or range and that levels can attract reactions without guaranteeing them. The conclusion reports that the indicator met its functional objectives and calculates levels on each tick, but offers no systematic backtest or quantified evidence that its strength labels improve trading outcomes. Its main contribution is an implementable charting and alerting procedure.
Key ideas
- The indicator searches historical candles for extreme highs and lows as candidate resistance and support.
- Nearby price tests help form zones around those turning points.
- Users can adjust the scan, zone dimensions, and notification behavior.
- The display distinguishes strong zones from weaker levels, but the labels do not guarantee a price reaction.
- The article describes functional testing rather than quantified strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.