Support/Resistance Indicator

krikri · Post by **krikri** » Sat Dec 13, 2014 2:56 pm

ok Milanese,

but with this version , the data window is empty (value 1 ,value 2 are blank) ,to be called directly by EAs, thus avoiding the need to use the indicator via iCustom calls .

How can I do ?

Cheers

Kris

Post by **milanese** » Sat Dec 13, 2014 3:58 pm

krikri » Sat Dec 13, 2014 2:56 pm wrote:ok Milanese,

but with this version , the data window is empty (value 1 ,value 2 are blank) ,to be called directly by EAs, thus avoiding the need to use the indicator via iCustom calls .

How can I do ?

Cheers

Kris

look here
click---> http://www.stevehopwoodforex.com/phpBB3 ... f=5&t=3506
in the code and you will understand how to embed the code, as both EA's use the SR indicator embeded.

Cheers

Tommaso

Post by **slipshod** » Tue Mar 10, 2015 7:00 am

Apologies for my extended absence, "real life" took me right away from trading over the last couple of years, but I'm slowly starting to get back into it again.

I've been running some trading ideas that use this indicator through some extensive manual backtests on the H4 charts, and one thing I've noticed is that when a zone changes to "Proven", which happens after its been bounced off a ton of times (I forget exactly how many) ... the zone is in fact very highly likely to be broken shortly thereafter. I guess this fits with Seiden's theories, of a zone becoming weaker the more its visited rather than stronger.

Anyway, on my own personal copy of the indicator I've reworded it so that "weak" zones are now called "potential" zones, and "proven" is now "weak". And with that change, I'm looking for those zones to fall now and using it as a trigger for trades, especially breakouts from a range-bound market, with some very encouraging results.

I guess I _could_ just upload this as a new version of the indicator, but lots of people are using it for various things now and I wouldn't want to make a change that fundamental without asking what other traders thought about it. So please tell me - does my experience with these zones accord with yours, and would such a change be helpful?

6y588 · Post by **6y588** » Tue Mar 10, 2015 2:50 pm

My idea may be stupid, but what if you had the zone changing from Unproven -> Proven -> Ex-proven, or gradually moving from weak to strong to weak again. I have not heard of Seiden's theory, but in this case the zone would reach an optimal strength much like a bell curve. That's in theory, but I do not have much experience in this space. Again, in theory, you could use a 1 std dev to determine when a zone changes.

Post by **slipshod** » Tue Mar 10, 2015 4:51 pm

6y588 » Wed Mar 11, 2015 12:50 am wrote:My idea may be stupid, but what if you had the zone changing from Unproven -> Proven -> Ex-proven, or gradually moving from weak to strong to weak again. I have not heard of Seiden's theory, but in this case the zone would reach an optimal strength much like a bell curve. That's in theory, but I do not have much experience in this space. Again, in theory, you could use a 1 std dev to determine when a zone changes.

That's along the lines of the change I'm proposing.

Traditional support/resistance theory says that the more often the price bounces off a zone, the more reliable that zone is & the higher the chance it'll hold when visited in the future.

Sam Seiden takes the opposite approach, saying that zones are temporary & exist for as long as there are unfilled orders at that price. Therefore in his view, the more often a zone is visited the more likely it is that it'll break. In fact he recommends only trading on the first visit to a zone.

I think the truth lies somewhere between the two. Certainly zones break all the time, else the price would never move. And its common for established zones to be busted - the more often they're visited the greater the odds are that the next visit will break it. To generate a bell curve indicating strength of a zone would require a lot of statistical research on the longevity of zones - work I haven't done and don't really have time to do - but it'd be very valuable knowledge to have.

burst2d · Post by **burst2d** » Tue Mar 10, 2015 7:58 pm

I was wondering how you trade untested zones and weak zones that usually appear in the middle between strong support and resistance zone boxes , recently i miss out on trades because I am not sure weather the untested/weak zone will hold up even though my other indicators are telling me that market will continue heading in that direction ? Recently price action on pairs have been bursting past these weak and untested zones

AnotherBrian · Post by **AnotherBrian** » Fri Mar 13, 2015 3:45 am

My random thoughts...

I agree with the change and I've followed Sams ways for years and it works. He also says to watch how far the zone is penetrated to give away it's strength. To tell you the truth, the "proven" words always confused me in the indicator as I looked at it knowing it would likely fail.

Sam also uses the scoring system. I looked at "scoring" each time a visit to a zone happened but my coding skills are not good enough.

I was manually looking at using this indi to trade this approach - when price reaches the middle of the zone, put 2 stop orders around the zone as one cancels the other. I didn't get to far as life got in the way, so I'm throwing that idea out there since your diving back into this.

Great to see you back here!

Post by **slipshod** » Fri Mar 13, 2015 3:55 am

What I always found difficult with Sam's method, is that he'd identify a hot zone where he believed the big money was waiting with limit orders, and he'd pretty much say to put limit orders of your own there as the price will react sharply off the zone when it hits it - with the implication that your stop should be nice & tight on the other side of the zone.

The problem I have with that is its great when it works & all, but it does lead to a TON of stop-outs when it doesn't. Sam tends to only show successful trade examples, not the many that would be failures. People who try to trade his ideas are left with the belief that its their own inability to identify zones correctly that's the problem, and I don't think this is very helpful. So while I think he does have valuable ideas, in my experience its not enough to make a profitable trade strategy - but Brian you say you've been trading his method successfully so I'd be happy to be proven wrong

Recently I've been experimenting with using a combination of this S/R indicator and Nanningbob's HGI indicator, using HGI in a way completely contrary to the recommended manner - looking for (for example) the price rising to hit a resistance zone, yellow (HGI) wavy lines appearing indicating a potential trend change, then buy arrows popping up, preferably more than one. If the price drops I hop onto a short. In manual H4 backtesting so far its been extremely profitable, but backtesting != real trading of course as there's far less time to second guess yourself & make bad decisions in a backtest

Edit: Here's an example:

T2H6nOJ.png

AnotherBrian · Post by **AnotherBrian** » Fri Mar 13, 2015 5:43 pm

The problem with Sams method is that he is trying to get you to sign up with his firm for training. He never goes into detail about zones enough to teach people what makes a good zone is not enough. There is more to it. Some think it is a counter trend method, and it can be used that way. The best way to use S/D is to trade with the trend using this method for pullbacks in a higher TF trend. The other part that I have learned is to only go with Grade A levels, fresh levels with a hell of a move away. Here is another problem, what is fresh? What if this fresh level was a re-visit to a previous level? And then they talk about aligning with other markets.... All this is listed under there scoring system for rating the levels. I'm no expert yet but I am way better then I used to be.

I have gone back in time to see what levels worked and taken screen shots of them to remind me. But you are right, there are lots of levels that don't hold. I find that if its going to work it will work right away so I go for a close breakeven setting, such as 1:1.

I don't know if an EA can capture what it takes. To me, the indicator should look at how fast and how far the move was away to determine if it is a zone with any merit. A gradual move away isn't what I look for, I'm looking for a race car off the start line.

The idea of mixing HGI with your indi is good and I think has merit. But take a look at the zoomed out chart and see if its a strong trending market, in what direction, or flat, and you will know what that is working right now. I noticed you were looking at USDCAD, and this pair is at a strong supply level.

here is what I wrote about this a while back

http://blog.tipster.ca/2015/01/remember ... again.html

http://www.stevehopwoodforex.com/phpBB3 ... ad#p113264

Post by **milanese** » Fri Mar 13, 2015 5:50 pm

@slipshod please attach always your img to your posts, we do not like this external links...
If you don't know how read there ---click---> http://www.stevehopwoodforex.com/phpBB3/kb.php?a=2

Cheers

Tommaso