You can determine support & resistance using Yearly, Quarterly, Monthly and Weekly open price points on a chart with any timeframe.
It is not a widely used technique, but according to different academic studies, levels are reliable. Google it! You can enhance your trading by adding that technique in your tool list.
At the current stage, Indicator shows Open Price Points.
Opening price points are extended into the future from the opening candle of each year, quarter, month and week and day.
By nature of that points, every level may be used as a support and as a resistance level at a similar time.
1) Open the indicator Inputs settings, enable/disable additional Price Points.
2) Open the indicator Style settings, click on a style of each line and click on a “Price Line.”
How to use that?
With a lot of available strategies, there are two leading: Level convergence and convergence.
1) Level convergence involves locating two or more opening points that merge. This confluence can lead to greater accuracy and profitability.
2) convergence - The intersection of a at a weekly, monthly, quarterly or even yearly opening level can produce fast and profitable reactions.
As a stand-alone strategy, you can utilize that:
Price action under the WO (DO, MO, QO, YO) –
Price action above the WO (DO, MO, QO, YO) –
TIP: opening level not always good as a stand-alone tool!
- Show Daily Open (disabled by default)
- Show Weekly Open (ON by default)
- Show Monthly Open (ON by default)
- Show Quarter Open (disabled by default)
- Show Yearly Open (disabled by default)
By default, each line is shown in the form of circles, line-width 1, silver colour.
Labels can be only in one of two states: Maroon (if open price less than ((open + high + low + close)/4) or Teal (if open price high than ((open + high + low + close)/4).
With the Indicator you can add a few different alerts:
- DO Alert
- WO Alert
- MO Alert
- QO Alert
- YO Alert
Play with it:
Add a new alert with following condition: your SYMBOL crossing DWMQY OPP Weekly Open.
Options: Once per Bar.
Future of the Indicator:
The Indicator is a necessary part of more prominent Indicator which will include 8 modules in total:
- 2~ Arabian Wise Tunnels Module
- 3~ RH Waves Module (something like Vegas Waves)
- 4~ Trend Channels Module
- 5~ Opening Range Zoning Module
- 6~ Breakout Module
- 7~ BS Hemisphere Module
- 8~ Price Action Module
DISCLAIMER! RISK WARNING!
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADERS SHOULD NOT BASE THEIR DECISION ON INVESTING IN ANY TRADING PROGRAM SOLELY ON THE PAST PERFORMANCE PRESENTED, ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, TRADERS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS.
//Written by iambitboy request.