Mapping Support and Resistance from Recent Price Peaks and Troughs
Summary
This document describes an indicator that locates visible price peaks and troughs in historical bars and plots them as support and resistance levels. Users can choose how many levels to show and where to begin, or link supports and resistances by matching their indices. Optional zones mark an area around each level, while labels can show its price, distance from the close, percentage change, and age in bars. The indicator is intended for scalping but is described as usable across time units.
The examples show independently selecting the first support and resistance, or pairing levels to outline a channel. The document provides implementation code and a visual convention of green supports and red resistances. It offers no performance tests or rules for trading the plotted levels. The levels are drawn from past extrema, so the description does not establish that they will hold, predict reversals, or account for changing market conditions; the author also notes that the English comments may be imperfect.
Key ideas
- The indicator scans historical highs and lows to identify candidate resistance and support levels.
- Users can choose the number and starting index of displayed levels, with an option to link support and resistance pairs.
- Configurable zones show an area of influence around each level, and optional labels provide level details.
- The document presents charting functionality but gives no backtest or evidence that these levels predict price behavior.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.