Filtering Historical All-Time Highs into Support and Resistance Levels

Summary

This indicator identifies historical all-time highs and projects selected levels forward as possible support or resistance. It tracks successive record highs, requires a minimum duration to confirm a level, and uses an average true range distance threshold to filter nearby highs. A display limit controls how many prior levels appear on the chart.

For each stored level, the method accumulates price distance above the level and total absolute distance from it, then uses their relationship to assign a support or resistance classification and a color gradient. The accompanying code also draws labels and updates display objects on the latest bar. The document gives implementation details and configurable parameters, but no backtest, market examples, or evidence that the classifications predict future price behavior. The classification rules are heuristic, and the description's simplified explanation may not capture every detail of the code's calculation. Results may also depend on available price history and parameter choices.

Key ideas

• The indicator records successive all-time highs and filters nearby levels using an ATR-based distance threshold.
• A duration setting delays confirmation of a candidate high.
• Subsequent price behavior is summarized to label historical levels as support or resistance.
• The number of displayed levels and classification sensitivity can be adjusted.
• The document provides code but no empirical evidence of trading performance.

Tags

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