Finding Support and Resistance with RSI-Selected Price Extremums
Summary
The article presents an MQL5 method for automatically drawing sloped support and resistance lines from price extrema. It uses an eight-period RSI to define search zones: overbought and oversold readings mark intervals in which the algorithm looks for high or low prices, including candle wicks. Functions identify the first and subsequent extrema, then connect them into lines that can indicate channels, trend direction, and potential breakouts. The line angles may also be monitored for signs of trend acceleration or slowing.
The author describes the method as based on personal trading experience and provides a qualitative account of trading demo signals, but no controlled performance study or detailed statistics. RSI levels and their adjustments were selected experimentally and may need tuning for each symbol and timeframe. The indicator can redraw its lines as new extrema form, so earlier levels may change; the article presents it as a basis for automated analysis rather than a validated standalone strategy.
Key ideas
- The method uses RSI readings to define intervals for searching price highs and lows.
- Extrema are identified from candle high and low prices and connected to form sloped support and resistance lines.
- Line direction and angle can be used to assess trends, channels, and possible changes in trend strength.
- The author favors breakout signals over trades based on price reversals from the lines.
- RSI thresholds were chosen experimentally, and indicator levels may be redrawn as new extrema form.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.