Support & Resistance Channels

[[Deleted]]

I am looking at a system that uses 3 separate indicators that work independently creating support/resistance levels based on the CCI.

A coder says it is not possible to get stable indicators but I'd like it verified by another coder please.

The base requirements are --

EXAMPLE

If CCI-55 crossed zero upwards a support horizontal would appear on screen under the PREVIOUS candle. If it re-crossed below zero on the same candle the horizontal would disappear.

The horizontal would only remain as long as the price has not broken through the horizontal level. When the price does break through, the horizontal line is deleted.

See illustration.

Thanks

TEAMTRADER

[BradBonds]

This can probably be done, but some things should be clarified. So, when the CCI crosses from below to above the zero line, it draws a horizontal line at the previous closed candle’s low price. If the CCI crosses from above to below the zero line, it draws a horizontal line at the previous closed candle’s high price. Then, if price crosses the horizontal line, it is deleted. Is there a limit on the number of bars to delete a horizontal line? E.g. if price crosses the horizontal line 500 candles later, is it still supposed to be deleted?

Also, in the attachment under Question 1 it says ‘and deleted if it re-crosses the same level on the same candle’ – that seems to contradict the ‘remain until the price has broken through and the horizontal would be deleted’ logic above it. it probably makes more sense to only have the horizontal lines deleted when price crosses that level, regardless of being intra-bar or not, but clarification is needed.

The problem may be that you won’t get a good history of the indicator, it only works going forward. So, if you are on a 4 hour or 1 day chart, the indicator will need quite some time before drawing any lines.

With that, you can add that indicator multiple times; say one with a 14 period, 20 period and 60 period CCI indicator. I don’t know for sure, but I’m confident that it’d be easy to do the same with 2 moving averages, RSI’s, stochastics or other oscillators as well.

BB