SR Cloud Support and Resistance from Average Minimum Swings

Summary

The SR Cloud indicator estimates resistance and support by measuring how far price moves from a bar's open. For each daily or weekly bar, its minimum swing is the smaller of the distance from the open to the high and the distance from the open to the low. The indicator calculates the average and standard deviation of these minimum swings over separate four-bar and nine-bar periods. Resistance is placed above the open by the average swing plus a configurable multiple of its standard deviation; support is placed the same distance below the open.

At the end of the calculation, the indicator uses whichever period produces the larger combined average and adjusted standard deviation. Unlike the referenced Greatest Swing Value approach, it includes all minimum swings without separating divergent bars. The description explains the calculation and adjustable multiplier but supplies no performance tests, market-specific guidance, or evidence that these levels predict reversals. The levels are estimates derived from past price movement, not guarantees of future support or resistance.

Key ideas

• A minimum swing is the smaller distance between a bar's open and its high or low.
• The indicator estimates levels using the average minimum swing plus a multiple of its standard deviation.
• It computes these measures over separate four-bar and nine-bar windows.
• The period with the larger adjusted swing estimate determines the displayed levels.
• All minimum swings are included without separating divergent bars.

Tags

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