Quino Channels from Price Distributions for Support and Resistance
Summary
The Quino Channel indicator estimates horizontal support and resistance from the distribution of closing prices over a chosen history. It sorts closes into equal-width price classes and builds a frequency histogram; classes with prominent peaks represent prices where trading activity recurred. Relative to the class containing the current close, prominent peaks on the lower and higher sides are used as candidate support and resistance levels. The indicator can search for these peaks automatically or let the user choose class indices manually, then display the resulting channel on the price chart.
The document also describes optional histogram scaling, class details, and a theoretical Gaussian overlay for visual comparison with a normal distribution. It recommends daily charts and gives typical configuration values, while noting that the history and class settings must be chosen by the user. No trading results or validation are presented, and a price-frequency peak alone does not establish that a level will hold. The Gaussian display is a visual reference, not evidence that prices follow a normal distribution or that the channel predicts future moves.
Key ideas
- The indicator bins historical closing prices into equal-width classes and counts observations in each class.
- Histogram peaks below and above the current-price class define candidate support and resistance levels.
- Users can select peak classes manually or use an automatic search for prominent levels.
- A Gaussian curve can be overlaid to compare its shape with the observed price histogram.
- The document provides setup guidance but no evidence that the resulting levels predict future price behavior.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.