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Simple Moving Average with
Resistance and Support
MetaStock Indicator
In this issue, Dennis L.Tilley uses support and resistance to
confirm price and SMA crossover signals in his article "Simple
Moving Average with Resistance and Support".
In MetaStock for Windows, you can easily recreate the SMARS
Indicators discussed in Tilley's article. First, choose Indicator
Builder from the Tools menu in MetaStock 6.5. Next, choose New and
enter the following formulas:
| Resistance and Support |
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LookBack := Input("Look
Back Periods",1,1000,10);
Resistance :=ValueWhen(1,Cross(Mov(C, LookBack, S),C),HHV(H,
LookBack));
Support :=ValueWhen(1,Cross(C,Mov(C, LookBack, S)),LLV(L,
LookBack));
Resistance;
Support; |
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| Resistance and Support *
F |
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PrCnt:=Input("Percentage",0,100,10);
LookBack:= Input("Look Back Periods",1,1000,10);
Resistance:=ValueWhen(1,Cross(Mov(C,LookBack,S),C),HHV(H,LookBack));
Support:=ValueWhen(1,Cross(C,Mov(C,LookBack,S)),LLV(L,LookBack));
Resistance * ((100-prcnt)/100);
Support * ((prcnt/100)+1); |
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*Note: It is much easier to see the difference between the
actual "Resistance and Support" lines and the "Resistance and
Support * F " lines if you change the color and/or style of one of
them.
To Display the Indicators in MetaStock 6.5 Drag the "Moving
Average" indicator from the Indicator QuickList into the price
window. Choose Simple as the method, enter the time periods and
then click OK.
Now, drag the "Resistance and Support" indicator from the
QuickList into the price window. You will be prompted to enter the
"Look Back" periods. You should select the same time periods you
used with the "Moving Average".
Finally, drag the "Resistance and Support * F" indicator into the
price window. You will be prompted to enter the "Percentage" and
the "Look Back" periods. If you would like the indicator to be a
10% difference from the "Resistance and Support" line, you would
enter 10. You should select the same time periods you used with
the "Moving Average".
Allan McNichol
Equis International
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