What is the best automated support & resistance finding algorithm you've used?

Discussion in 'Trading' started by Kovacs, Jun 22, 2009.

  1. Kovacs

    Kovacs

    I haven't found any that come even close to the human eye, but I'm curious to know which do an adequate job.

    I would appreciate a description of what you liked about it and where it was found.
     
  2. Identifying S&R levels are hard because it is an art and not a science. You will not always use the lows for support, sometimes the close of the candles will provide better support lines.

    I have once created an indicator to identify channels. The best way to do so is to first create Linear Regression channel on the required period, and than check if it is confirmed by bounces of its support & resistance trendlines.

    It is a way, but it works only if you are identifying channels and ranges. The real support and resistance levels are still hard to identify automatically.
     
  3. Market Profile is good, when it "works". :cool:
     
  4. goat entrails