Plotting Support and Resistance from External Indicator Signals
Summary
This indicator turns a separate script's numeric output into horizontal price levels. When the prior bar's selected source equals positive one, it draws a resistance line at that bar's high; when it equals negative one, it draws support at that bar's low. It retains a rolling set of recent lines for each side, deleting the oldest as new levels are added. Color, width, line style, and extension are configurable.
The accompanying example uses RSI threshold crossings to produce the signal values, while the text also suggests that outputs from other indicators or price and volume logic could be connected. This is a flexible visualization pattern: signal generation and level drawing are separated, with the source series linking them. It does not define a complete trading strategy or report results. The example's interpretation of RSI crossings as points of interest is illustrative, not evidence that resulting levels will hold or offer an advantage; practical use depends on the external signal logic and instrument.
Key ideas
- A selected external series triggers level creation when its prior value is positive one or negative one.
- Positive signals place resistance at the previous bar's high, while negative signals place support at its low.
- The indicator maintains a limited rolling history and lets users configure line appearance and extension.
- An RSI threshold example demonstrates the input format, but the document gives no evidence that the plotted 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.