Dynamic Support and Resistance Signals from Moving Average Crossovers

Summary

This document describes an oscillator that combines weighted and simple moving averages to create an SR line and a signal line. It also plots channel boundaries derived from recent highs and lows. A cross of the SR line above the signal line is presented as a buy signal, while a downward cross is a sell signal. The author describes additional, stronger signals when the SR line crosses a channel boundary in conjunction with the signal line.

The text recommends using the indicator on hourly or higher charts and says it can be displayed separately or alongside price. It provides ProRealTime code with the indicator calculations and plotted lines, but no chart examples, backtest, or performance statistics. The document's claim of accuracy is unsupported by evidence here. The crossover rules are descriptions of signals, not a complete trading plan: there are no specified exit rules, position sizing guidelines, or evaluation of transaction costs and risk.

Key ideas

• The indicator forms its SR and signal lines from weighted and simple moving averages.
• It uses recent highs and lows to plot channel limits around the price movement.
• An upward SR and signal-line crossover is described as a buy signal, and a downward crossover as a sell signal.
• Channel boundary crosses paired with signal-line crosses are presented as stronger signals.
• The document provides indicator code but no empirical performance evidence or full risk-management rules.

Tags

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