OPEN-SOURCE SCRIPT

Support and Resistance Strategy

Support and resistance Strategy (FX and Crypto)
Description: This strategy uses “support” S and “resistance” R levels, which can be computed
using the “pivot point” (a.k.a. the “center”) C as follows:

C = (PH + PL + PC) / 3
R = 2 × C - PL
S = 2 × C - PH

Here PH, PL and PC are the previous day’s high, low and closing prices.
One way to define a trading signal is as follows (as above, P is the current price):

Signal:
Establish long position if P > C
Liquidate long position if P ≥ R
Establish short position if P < C
Liquidate short position if P ≤ S

Other definitions of the pivot point (e.g., using the current trading day’s open price) and
higher/lower support/resistance levels exist.

Style tags: Trend Following, Trend Analysis
Asset class: Equities, Futures, ETFs, Currencies and Commodities
Dataset: FX Minutes/Hours/Days
strategyTrend AnalysisVolatility

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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