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Automatic Support and
Resistance
MetaStock Formula
Copied from Technical Analysis of Stocks and Commodities
Magazine. This is in regards to an article on page 51 of the May
1998 issue.
In my article "Automatic support and resistance" in this issue, I
present a computerized approach to finding support and resistance
levels on a chart. To recreate the indicators and system described
in my article using MetaStock for Windows, enter the following
formulas:
| Indicators |
|
S1: IF(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS)
S2: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S1"),-1))
S3: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S2"),-1))
S4: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S3"),-1))
S5: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S4"),-1))
S6: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S5"),-1)) |
WSO:
100*(1(Int(Fml("S1")/CLOSE)+Int(Fml("S2")/CLOSE)+Int(Fml("S3")/CLOSE)+Int(Fml("S4")/CLOSE)
+Int(Fml("S5")/CLOSE)+Int(Fml("S6")/CLOSE))/6) |
R1: IF(Ref(HIGH,-4)=HHV(HIGH,9),Ref(HIGH,-4),PREVIOUS)
R2: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R1"),-1))
R3: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R2"),-1))
R4: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R3"),-1))
R5: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R4"),-1))
R6: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R5"),-1)) |
WRO:
100*(1(Int(Fml("R1")/CLOSE)+Int(Fml("R2")/CLOSE) +Int(Fml("R3")/CLOSE)+Int(Fml("R4")/CLOSE)
+Int(Fml("R5")/CLOSE)+Int(Fml("R6")/CLOSE))/6) |
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The indicators S1 through S6 and R1 through R6 should be
plotted as points and not as a continuous line.
Trading System Formulas and Parameters: Enter long
positions on either building support or sustained uptrend and exit
position using stops. No short positions.
| Stop Out |
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| Fml("WSO") > Mov( Fml("WSO")
, 4 , S ) OR Mov( Fml("WRO") , 30 , S ) > 95 |
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| Enter Long |
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| Breakeven stop:
Floor level at 2% |
| Trailing stop:
Profit risk of 10 Percent, ignoring 10 periods |
| Maximum loss stop:
Maximum loss of 7% |
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| Other Conditions |
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| Initial equity = 1000, Long
positions only, Trade price = close, Trade delay = 0, Entry
commission = 0%, Exit commission = 0%, , Interest rate = 5%,
Margin req. 100% |
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-- Mel Widner, Ph.D., +1 703 791-5910
E-mail
techstrategies@msn.com
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