support/resistance in easy language

Discussion in 'Strategy Development' started by travis, May 27, 2003.

  1. travis

    travis

    How can I implement a signal/function in easy language to trigger a signal if price, after a big fall, bounces for a few hours a support, and then takes off in the opposite direction?

    The exact formula I am trying to find/write is this:

    if after a fall (>0.01 from the top), it keeps on bouncing on the "bottom" (within a range of <0.005) for >2 hours - that is a support, and the next ma bullish signal should be followed no matter what

    if after a rise (>0.01 from the bottom), it keeps on bouncing on the "ceiling" (within a range of <0.005) for >2 hours - that is a resistance, and the next ma bearish signal should be followed no matter what

    Please write it for me, or tell me where I can find it.

    Here is an example of a situation where my system didn't exploit a rise following a support. In the future I want the system to see such things.

    [​IMG]