Does anyone know of a pivot support & resistance indicator that can take into account the strength of the support & resistance levels? I have been searching around and I can find discussion of the concept, but haven't been able to locate an example. The concept I am referring to is an indicator that takes various swing high/low pivot points and determines strength by calculating the number of times they have been tested and factoring in more recent data. " indication of how well the support and resistance levels may prevail is how recently they have been tested. The more recent any activity is, the more likely it is to hold up to further testing " If you have seen anything like this I would really appreciate the help ... I am trying to avoid reinventing the wheel if someone has already done it once before.
I have used same concept of strength of the pivot for three decades, although I have tried countless indicators to define a better method. A number of charting programs will place a dot above the pivot based on how many bars to L/R that have a lower high. The larger the number, more importance I view it and starting a trendline from it to a lesser strength pivot offers to be of more importance than say taking 5 bars to L/R to another one of same or lesser. Using longer term charts such as 60 minutes, four hour, daily, weekly, and monthly will provide hard trendlines for Price to either bounce off or break through. I use all of these to day trade ES, as very often Price will bounce off, so the trendlines can be placing to take profit or stop me from taking a trade which might not offer much profit. But I hope you find one, drawing these trendlines each day is time consuming, LOL.
=========== Good question, A-ton trend; yes. Support & resistance is determined by many factors; number of S&R times tested, round number like $5, 50,$250,000,seasonals, & recent activity.... But a 200 day or to a lessor degree, 50dma moving avrerage [200dma is a bull or bear line in the sand ] those 2 dma can be more important than any of the above. For example, on a 12 month candlechart, AND on all data monthly charts; SLV, silver area of resistance/$50 is important. Not an exact S&R] & not or 200dma or 50dma number], but its[50] an important number] Another rexample BAC has spent so much time below 200dma & 50 dma the past 12 months; its a noteworthy change- the fact its spent more time recently above its 50 day moving average.No way 50or 58 ''more recent'' minutes S&R is as important as 50 days or 50 years S& R. 7 is an important S&R number; seven[7]years of S&R study,trading/investing is another key. Wisdsom is profitable to direct. 5 dollars on a stock is important, as IBD{Investors Business Daily} notes. so it differs from market to market..............................