Projecting Support and Resistance from Indicator Swing Pivots

Summary

This indicator plots projected support and resistance lines from the latest three swing highs and lows of a chosen indicator. Its example uses a smoothed RSI, but the indicator input can be replaced. Pivot detection is adjustable by changing how many bars on either side qualify a high or low. The tool projects lines based on pairs of pivots, optionally averages those projections, and can display midpoint lines or connect successive segments when a new pivot appears.

The author suggests watching indicator breaks of these levels for possible direction changes or trend starts, and comparing line slopes with price to look for divergence. These are proposed uses rather than tested results: the document supplies no performance study or rules for trading signals. Pivot identification depends on bars after a candidate turning point, so a signal may only become known after those bars have formed. The post is an indicator description with platform code, not a validated trading strategy.

Key ideas

• The indicator projects support and resistance from the last three swing highs and lows of a selected indicator.
• Pivot sensitivity can be changed by requiring a chosen number of bars before and after a turning point.
• Projected lines can use different pivot pairs, averages of those lines, and midpoint displays.
• The author proposes using line breaks and slope comparisons with price to observe possible trend changes or divergence.
• The document provides no backtest evidence, and pivot confirmation requires bars after a potential turning point.

Tags

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