Dynamic Support and Resistance from Weighted Pivot Distributions

Summary

This indicator estimates dynamic support and resistance by collecting swing highs and lows detected at four configurable lookback lengths. It assigns each pivot equal, recency-based, or volume-based weight, adds those weights into price bins, and smooths the resulting distribution with a sinc filter. Local peaks in the filtered distribution become candidate levels; levels below the current close are marked as support and those above as resistance.

The display can include a projected histogram, horizontal levels, shaded price zones, and markers for bullish or bearish interactions that meet the indicator’s bounce rules. Settings control pivot lengths, stored history, bin granularity, filter strength, and visual options. The document explains the construction and parameters but supplies no performance tests showing whether these levels predict future reversals. Results will depend on the instrument, timeframe, weighting choice, and settings, and detected pivots are historical observations rather than guarantees of future support or resistance.

Key ideas

• Four pivot lookback lengths capture reversals at multiple scales.
• Pivots can be weighted equally, by recency, or by volume at the reversal.
• A binned price distribution is smoothed, and its local peaks define candidate support and resistance levels.
• The indicator can plot price zones and mark interactions that meet its bullish or bearish bounce conditions.
• The document describes the method but provides no evidence of predictive performance.

Tags

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