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MetaStock
Indicator - Support
and Resistance
rev. 26/04/01
Think of security
prices as the result of a head-to-head battle
between a bull (the buyer) and a bear (the
seller). The bulls push prices higher and the
bears push prices lower. The direction prices
actually move reveals who is winning the battle.
Support levels
indicate the price where the majority of investors
believe that prices will move higher, and
resistance levels indicate the price at which a
majority of investors feel prices will move lower.
To create the
Support and Resistance indicator in MetaStock use the
following custom formula:
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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To use this
formula most effectively, use the parameters
dialogue to change the style to a dotted
line while increasing the line weighting.
Download the
Support and Resistance Indicator for use in
your MetaStock software by clicking here.
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