Candlestick-Based Support and Resistance from Range Fractions

Summary

This indicator calculates two resistance levels and two support levels from the high, low, and close of candles on a timeframe selected by the user. It first computes the typical price as the average of those three values, then places resistance above and support below that center by adding or subtracting half or 0.618 times the candle’s high-low range.

The document gives the formulas and notes that an earlier MQL4 implementation was published in 2008. It does not specify how multiple candles are combined, how the levels should guide entries or exits, or whether they were tested for predictive value. The formulas define a technical indicator, but the text supplies no performance evidence or instrument-specific guidance.

Key ideas

• The indicator uses candle high, low, and close from a user-selected timeframe.
• It centers the levels on the average of the candle’s high, low, and close.
• Two support and two resistance levels are offset by half and 0.618 of the candle range.
• The document describes the calculation but gives no trading rules or test results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.