Backtesting for constantly FIXED psychological support and resistance

Discussion in 'Trading Software' started by stephan, Jun 26, 2012.

  1. stephan

    stephan

    I am a doctoral student doing some research on the viability of "psychological numbers" as support and resistance. e.g. a stock trades up to 100 then retreats, but the 100 mark becomes support after overtaken, even though there is no technical significance to the 100 mark except for the fact that it is 100.

    A lot of the trading programs I have looked into that have backtesting potential use support and resistance off of charts where I am looking for just the price action around certain numbers over a long period of time.

    I guess the optimal software would be one that allowed me to enter a ticker symbol, some fixed numbers to act as support and resistance, and then backtest these numbers as if they were traded like conventional support and resistance. For example entering AAPL, 100, 200, 300, 400, etc. as the levels.