Support/Resistance Indicator

[Tomsic]

Hi Slipshod,

Very nice indy

Is it possible to create a version of this that will draw boxes when and where resistance/support is broken as to suggest an area price may retest (support becomes resistance / resistance becomes support concept)?

I'm not asking for myself, as I find it easy enough to identify and draw these areas on my own, but I'm trying to help a new trader out who is having trouble finding these areas

I have limited coding capabilities, and always though this wasn't possible to do with MQL4, but your indicator has made me rethink that limitation

Here's a chart example of what I'd be looking for:

GBPCADH1.png

If this would be an easy edit that wouldn't cause someone much trouble, I'd greatly appreciate the help.. otherwise, maybe a point in the right direction so I could try and modify the existing code to look for these setups instead?

[slipshod]

Is it possible to create a version of this that will draw boxes when and where resistance/support is broken as to suggest an area price may retest (support becomes resistance / resistance becomes support concept)?

That's exactly what it already does

[Tomsic]

Is it possible to create a version of this that will draw boxes when and where resistance/support is broken as to suggest an area price may retest (support becomes resistance / resistance becomes support concept)?

That's exactly what it already does

Hmm, when I put it on my chart, it looked like it was doing things a bit differently..
ie. it would draw support boxes in uptrend instead of resistance becoming support?

GBPCADH1 sr.png

I highlighted with yellow boxes how it draws support areas.. and magenta shows two turncoat areas..

I guess I was hoping to just have Turncoat + show more of them as it seems to have missed a few?

[slipshod]

Tom, its actually only missed one, the zone around the 1.91330 area.

The indicator can be configured by adjusting the "zone_fuzzfactor", "fractal_fast_factor" and "fractal_slow_factor". With values of 0.9, 1.5 and 6.0 respectively I get the following:-

trading8.png

Not exactly the same as your hand-drawn zones, but some of those were broken by the price before it reversed upwards hence an indicator will not draw them.

My screenshot shows a flaw in the indicator (which I'll get around to fixing one day), the 4th zone from the top is incorrectly classified as "weak" when as a Turncoat that's only been tested a couple of times its status should actually be "verified".

Also there's a beautiful rising & converging wedge formation with a break out the top into a significant resistance level, as perfect an example of a "Wolfe Wave" as you could hope to see (they're powerful reversal patterns). I'm not saying the price is definitely going to reverse off that resistance, indeed its a brave man who bets against the GBP right now, but its created several of these on various charts recently & it certainly bears watching.

[Tomsic]

Tom, its actually only missed one, the zone around the 1.91330 area.

The indicator can be configured by adjusting the "zone_fuzzfactor", "fractal_fast_factor" and "fractal_slow_factor". With values of 0.9, 1.5 and 6.0 respectively I get the following:-

Thanks, slipshod.. I'll play around with those settings

[slipshod]

I don't want to turn this thread into a trading blog, but just for once here's an update of GBPCAD from my last post...

trading9.png

I mentioned that the Wolfe Wave into resistance might see it reverse, and it did with a powerful hook back to touch on the median line of the Andrews Fork I added to the chart. I wasn't at my desk when it dropped hence missed that trade, but hopped on board the bounce-back long & have already taken some profit at the resistance level.

Question now is whether the uptrend will resume or if it'll struggle to get back to 1.95000 - whether the Wolfe Wave was good enough for just that one downspike or if it heralded a change in trend on the H1 chart.

[Tomsic]

I don't want to turn this thread into a trading blog, but just for once here's an update of GBPCAD from my last post...


I mentioned that the Wolfe Wave into resistance might see it reverse, and it did with a powerful hook back to touch on the median line of the Andrews Fork I added to the chart. I wasn't at my desk when it dropped hence missed that trade, but hopped on board the bounce-back long & have already taken some profit at the resistance level.

Question now is whether the uptrend will resume or if it'll struggle to get back to 1.95000 - whether the Wolfe Wave was good enough for just that one downspike or if it heralded a change in trend on the H1 chart.

Nice call

I bought GBPCAD around the same level, but just closed all of it for +75pips

I don't know much about Wolfe Waves, but wouldn't be surprised if the daily pulled back a bit from here.

Also, I know you don't want this to be a trading journal, but I'm sure other members wouldn't mind too much

[mobthehop]

slipshot,

I always meant to ask - would you be so kind and explain to an "uninitiated" what "zone_fuzzfactor", "fractal_fast_factor" and "fractal_slow_factor" calculate..

Thanks in advance

[slipshod]

I always meant to ask - would you be so kind and explain to an "uninitiated" what "zone_fuzzfactor", "fractal_fast_factor" and "fractal_slow_factor" calculate..

Sure mob. Firstly, I always think of support/resistance zones as being approximate areas where the price may turn. To identify these areas the program uses its own implementation of fractals - some other S/R indicators use zigzag but I found fractals more useful. There's actually two types of fractal which you can see on the chart if you set the fractal_show option to true - a "fast" one to identify most of the minor peaks & troughs, and a "slow" one to find the more significant turning points. Changing the values for slow & fast allows you to fine-tune the behaviour of this aspect of the indicator.

Where-ever there's a fractal, the indicator will create a zone. Fuzzfactor adds an approximate area above & below the price extreme at the fractal, the larger the fuzzfactor the bigger the approximate zone will be. Zones that overlap are then merged together. So a higher fuzzfactor will find fewer but larger zones, whereas a lower one will find more zones & they'll be smaller and more specific. If the fuzzfactor is too high then the zones become too vague to be of use, if its too low then the chart is filled with small zones which is also not very useful.

The reason I made these values configurable is that a setting that works on longer timeframes doesn't necessarily work for shorter ones. Generally the lower the timeframe, the higher the fuzzfactor required & potentially the fractal values may need to be reduced as well in order to show levels that meet the eye test.

I hope that makes sense

[michaeldz]

Big thanks to Slipshod for this great indicator I have rewritten it a bit to allow visual "backtesting". Set Testing to true (or click the "Testing" button) and scroll the chart back. Zones will be recalculated and displayed like during live trading in the past.
And I have found one bug (I think) - in FastFractals and SlowFractals

Code: Select all

if (counted > 0) 
  limit = MathMin(BackLimit, MathMax(P, Bars - counted));
else
  limit = MathMin(BackLimit, Bars-1);

should be

Code: Select all

limit = MathMin(BackLimit, Bars-1)

Try SS_SupportResistance_v06 on M1 chart - leave it for some time. And then open a new M1 chart with the same pair and apply SS_SupportResistance_v06. It will show different zones.
Best regards