Finding Support and Resistance with Bar-Crossing Counts
Summary
The article presents a MetaTrader indicator that estimates support and resistance by counting how many historical bars cross each price level. It searches the resulting price-by-count series for local minima within a configurable radius. A candidate level is retained only when the count range in that neighborhood exceeds a minimum threshold, intended to filter out insignificant minima. The indicator then draws horizontal lines and updates them as the analyzed bar window changes.
The method supports user-selected timeframes and overlays results with different colors, widths, and styles to distinguish them. The author reports that testing suggested displaying a modest number of levels per timeframe, with the radius and count threshold adjusted to the timeframe. The article provides no rigorous predictive-performance evaluation, and the parameters are presented as empirical choices; the levels identify historical bar-crossing patterns, not confirmed future price barriers.
Key ideas
- The indicator counts historical bars that span each price to form a price-crossing profile.
- It selects local minima within a configurable radius when the neighborhood has sufficient count variation.
- Timeframe-specific line styles help distinguish levels when several timeframe results are displayed together.
- The suggested parameter ranges come from practical testing and may need adjustment by timeframe.
- Historical crossing counts alone do not establish that a level will constrain future prices.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.