Support and resistance

Discussion in 'Strategy Development' started by eurusdzn, Mar 12, 2013.

  1. eurusdzn


    Can anyone tell me of a way to calculate daily support and resistance levels without
    having to kill me?
    I am in the process of using free yahoo data using only the high/low of the day to calculate Market Profile TPO horizontal support and resistance levels. My intentions are to test
    if a given signal(s) works better if the setup includes these S/R levels.
    I have heard that S/R levels and trend lines are not easy to calculate( don't care about trend lines). I am getting somewhere following this method but am wondering if a paper/.pdf of "another" known generic method of calculating s/r levels is out there.
    Am using excel vba and .csv files........Thanks in advance.
    Have to say that I haven't posted in this strategy forum and rate as a beginner and
    can now hear the collective........."no shit"
  2. etfarb


    I see this was posted a week ago now.

    I'm not 100% sure but I think you can figure something out by using the OHLC prices
  3. eurusdzn


    I am familiar with R1,R2,S1,S2, Gann, Fib and the like available but it doesn't really help
    me.(not at all a TA basher....just me) . I prefer eyeballing a chart and drawing levels.
    But I am not afull time pro trader and have limited time to look at many charts.
    I think market profile is best to to see these levels, got this from Ammo over in ES journal.
    I have coded a reasonable approx of market profile so far. I should be able to get an alert
    When stocks in the Sp500 are at important levels.
    Forget my abilities to code trend. i had inquired in another post. Wayyyyyy to fuzzy to code for me. I will just look at a chart regarding that. Thanks for your response.
    PS...Do you spread trade etfs? Interesting area if so.
  4. etfarb


    are you using daily or intraday data?

    how are you coding/backtesting market profile to determine these key levels?

    Gann and fibb is a waste of time, don't test that crap (in my opinion, but if it works for you more power)

    I do spread trade etfs. Been focusing my attention on index arbitrage lately tho
  5. eurusdzn


    I am using Excel/VBA with yahoo eod data organized into seperate .csv files. The program will work with any time frame bar. I do intend to get 1 hour bars in the future but I can't say I like the IB DDE interface to historical data.
    Conceptually, for example, a one year chart has a single vertical bar, a yearly high and low. Price moved rapidly a few, several times during the year and the profile of time is thin
    at these levels. Price , a few,several times during the year consolidated in time and these areas are thick in profile.
    Searching for rapid changes in the profile numbers (increasing)above a rising stock is a ceiling/ledge/resistance. Searching for rapid decreases in the profile numbers below current price is support. That's all. It is subjective yes and won't be perfect but maybe a decent
    Context to work from in addition to trend. No plans to backtest yet but would maybe just do
    Some "x" day holds or next S/R price target , with trend, after price has tagged S/R.