Support and Resistance Zones from Confirmed Price Pivots
Summary
The indicator marks support at a local low when the pivot is lower than the lows in the surrounding bars, and resistance at a local high under the corresponding comparison with surrounding highs. Its stated settings use four earlier bars and two later bars to confirm each pivot. A support segment begins at the pivot low and extends forward until price crosses it or another support level is formed; resistance is drawn in the same way from a pivot high.
This is a rule-based way to turn swing points into horizontal price zones, with green support and red resistance segments. The document includes the indicator logic but no chart examples, market-specific guidance, or performance results. Because confirmation depends on subsequent bars, a pivot is only identifiable after those bars have occurred; the text does not discuss signal timing, repeated tests of a level, or how a trader should act when price approaches or crosses one.
Key ideas
- A support pivot is defined using a local low and comparisons with surrounding lows.
- A resistance pivot uses the analogous local high condition.
- The described settings examine four preceding bars and two following bars to confirm a pivot.
- Each level extends from its pivot until it is crossed or replaced by a newer level.
- The document explains level construction but supplies no evidence of trading profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.