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"All" Support/Resistance . Is this theoretically possible?
Hi guys, I dont know anything about programming so please bear with my questions sound dumb.
I had an idea for an indicator but I dont know if its possible.
Essentially the indicator would plot ALL horizontal support and resistance lines over a specified look-back period.
In order to define what support/resistance is, I would probably use fractals.
Essentially a support or resistance would be defined as the low or high of a level 5 fractal.
(In case anyone is not familiar with fractals, and how they are defined, please see my drawing below)
Lets assume that the lookback period is 5,000 bars.
The indicator would look for all the level 5 fractals over the last 5000 bars, and draw a horizontal line at the high or low defining that fractal.
I want my screen to be literally covered in hundreds of historical horizontal lines.
The idea being that I can instantly get a visual idea of where historical support and resistance is, and how strong that support/resistance is simply by gauging how "thick" the clustering of horizontal lines are in a particular region.
If you want fewer lines, simply specify a higher fractal level (eg level 30 fractal), and If I want even MORE lines, simply use a lower fractal like level 2 fractal).
Basically you might call it a kind of heat-map based on horizontal lines. (These horizontal lines would need to be on chart background so as not to obscure the candles, and would need to be "non-clickable" so that every time you click on the chart you are not highlighting a horizontal line).
Any feedback would be appreciated.
Thanks
Can you help answer these questions from other members on NexusFi?
Heya Blue, ol' buddy... :beer: I've been try'n to catch up on some reading all day, but seems like other things keep pop'n up.. Anyway, hopefully now I can get back to it and thought I'd take a moment to share... I did some personal …
Hi cory, Thanks for the info, but that indicator is only half-way there.
It indeed plots the horizontal lines the way I described (using fractals), but the problem with that indicator is that the horizontal lines are erased as soon as they are broken.
I want the horizontal lines to persist; so that over a large period sample (like hundreds or thousands of bars), we get a mass of horizontal lines which create a heat-map style effect on the screen.
Hi cory, I've searched for the swingray indicator, but I can't find any where the lines are kept permanently on the chart the way I want (they are deleted once the line is violated). Did you have a particular version in mind that doesnt delete the lines?
I want to test something. It's simple. Place some random lines on your chart prior to the day opening, and see if at the end of the day you feel like those lines were important (try to imagine they weren't random, but some expensive or complicated …
Personally I am well aware of the random line stuff you talked about. I have done it myself (ie asking, am i crazy to think this works, I wonder if I changed the settings/values to some random amount If I would still "see" the same concidences".)
I can save you the trouble of covering your entire screen with lines. Mark support and resistance from higher timeframes, those will be the most significant. Reason being you have big money looking at them and subsequently all the lower time frame looking at them as well. If you trade such a thing, trade the zone, not that exact-to-the-tick line itself. Trade confluence of areas that you think is significant with a bunch of different shit that people look at overlapping on an area. That's not to say that price will reverse at those levels, but if you do want to go for a reversal, those are probably your best chance.
In trading, shortcuts lead to the longest path possible.