Swing based support and resistanceThis indicator provided here is for identifying swing-based support and resistance levels. It uses two swing lengths, which can be adjusted by the user, to identify swings in the price data. For each swing length, the script calculates the support level as the low of the swing if the trend is up, or the high of the swing if the trend is down. It then plots the support and resistance levels on the chart, along with buy and sell signals.
The buy and sell signals are generated by comparing the current closing price to the support and resistance levels. If the closing price is above the support level, the script plots a buy signal. If the closing price is below the level, the script plots a sell signal.
To use the script, you would first need to add it to your trading platform. Once it is added, you can configure the swing lengths and other parameters to suit your trading style. You can then apply the script to a chart and begin using the support and resistance levels and buy and sell signals to make trading decisions.
Points to be noted while using the indicator:
# The script is designed to be used on a daily chart. However, you can also use it on other timeframes, such as weekly or monthly charts.
# The swing lengths that you choose will depend on your trading style. If you are a swing trader, you may want to use longer swing lengths. If you are a day trader, you may want to use shorter swing lengths.
# Remember, the support and resistance levels generated by the script are not exact price points. They are rather zones where demand and supply can change. Therefore, you should always use other technical analysis tools and indicators to confirm your trading decisions.
# Overall, the script is a useful tool for identifying swing-based support and resistance levels. It can be used by traders of all experience levels to generate trading ideas and improve their trading performance.
To use the swing-based support and resistance indicator with respect to price, you can follow these steps:
=> Identify the support and resistance levels that have been generated by the indicator.
=> Look for price action that is taking place near these levels.
=> If the price is above the level, look for bullish reversals or continuations.
=> If the price is below the level, look for bearish reversals or continuations.
For Example,
=> Bullish reversal: The price is above the level and forms a bullish candlestick pattern, such as a bullish hammer or engulfing pattern.
=> Bullish continuation: The price is above the level and bounces off of the level.
=> Bearish reversal: The price is below the level and forms a bearish candlestick pattern, such as a bearish hammer or engulfing pattern.
=> Bearish continuation: The price is below the level and rejects the level.
$$ You can also use the indicator to identify potential trading entry and exit points. For example, you could enter a long trade when the price breaks above a resistance level and exit the trade when the price retraces to the resistance level. Or, you could enter a short trade when the price breaks below a support level and exit the trade when the price rallies to the support level.
This swing-based support and resistance indicator is just one tool that you can use to trade. You should always use other technical analysis tools and indicators, such as price action and trend analysis, to confirm your trading decisions.
Additionally:
=> Be aware of the overall trend direction. If the trend is up, you should be looking for bullish reversals or continuations. If the trend is down, you should be looking for bearish reversals or continuations.
=> Use a stop loss order to limit your risk on each trade.
=> Consider using a position sizing strategy to manage your risk.
=> Do your own research and backtest any trading strategy before using it in a live trading environment.
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Tradesetup
Zig Zag High-Low + RSIThis indicator adds to the functionality of Tr0sT's Zig Zag High Low Indicator by adding the RSI value above the higher-high to eyeball whether the current trend (signified by consecutive higher-highs and higher lows or consecutive lower highs and lower lows) is strengthening or weakening.
THEORY / METHODOLOGY:
If the uptrend is strong, the later pivot high will have a greater RSI number than the previous pivot high indicating an opportunity to go long. In a downtrend the lower high should have a lower RSI than the previous lower high indicating an opportunity to go short. If it does not, it is an indication that the trend is weakening.
ACTION:
If the ZigZag has higher highs and Higher lows and a strengthening RSI, look for Long opportunities on the lower time frame. If the ZigZag has lower highs and lower lows and a weakening RSI, look for Short opportunities on the lower time frame.
USAGE:
This methodology works best and produces the most opportunities when the markets are active, i.e. between 6AM-11AM EST
Thanks to Tr0sT for the original ZigZag High-Low indicator.
Tr0sT: www.tradingview.com
Zig Zag High Low Indicator:
Manual Back Test LinesI created this indicator to primarily manually test other indicators in replay mode.
To use this indicator generally you will:
Select trade type: long or short
Enter your ATR (enter the actual ATR). The indicator will then calculate and plot your SL and targets based on your values
Default Stop Loss is ATR * 1.5
Default Target 1 is ATR * 1.5
Default Target 2 is ATR * 3
Using this indicator on Replay mode is great. What you do is go back in time. Hit play and as the indicator(s) you use provide signals pause.
Pull up options:
Select trade type
Update ATR value
Change date to entry date. Typically if you are trading off the daily timeframe you are going to wait for your current day candle to close to provide signal. That would mean your entry would be on the next day.
Click play and watch, track and record how trade unfolds.
Future updates:
I'd like to be able to have some way to click one button and have it fire that enter trade right now on chart. Also I'm working on figuring out how to calculate the ATR on the entry date so that isn't required to be entered.
Finally, I'd like to have some auto calculation on when targets and SL are hit. I have this partially done but it's more important that I use this indicator than spend time or funds to update it to do that. But I do plan on updating.
