Update.
- you can specify count of bars used to detect reversal pattern
- you can specify count of bars used to determine lowest or highest price to place support or resistance
- area between lines is filled by green - ascending, red - descending trend
To trade:
- open position using stop command on S/R
- close position using limit command on retracement line
- close position when background colour indicates trend change
(erratum: last balloon on right should say "buy limit")
- you can specify count of bars used to detect reversal pattern
- you can specify count of bars used to determine lowest or highest price to place support or resistance
- area between lines is filled by green - ascending, red - descending trend
To trade:
- open position using stop command on S/R
- close position using limit command on retracement line
- close position when background colour indicates trend change
(erratum: last balloon on right should say "buy limit")
study("Profit target area", overlay=true) bars =input(title="Reversial pattern length (bars)", type=integer, defval=3, minval=1) exbars = input(title="S/R detection (bars)", type=integer, defval=10, minval=1) descent_cnt = high <= nz(high[1])?nz(descent_cnt[1])+1:0 ascent_cnt = low >= nz(low[1])?nz(ascent_cnt[1])+1:0 descent = descent_cnt >= bars ascent = ascent_cnt >= bars st = ascent?true:(descent?false:nz(st[1])) h = st[1] and not st?highest(high,exbars):nz(h[1]) l = not st[1] and st?lowest(low,exbars):nz(l[1]) f = h - l h38 = l + f/(1-0.382) h62 = l + f/(1-0.618) l38 = h - f/(1-0.382) l62 = h - f/(1-0.618) modeline = plot(st[0]?l:h,color=white,title="invisible plot", style=cross) ph = plot(h,color=green, title="resistance") pl = plot(l,color=red, title="support") p3 = plot(h38, color=#80FF80, title="38% above") p1 = plot(h62, color=#C0FFC0, title="62% above") p2 = plot(l62, color=#FFC0FF, title="62% below") p4 = plot(l38, color=#FF80FF, title="38% below") fill(p1,p3,color=#80FF80, transp=80, title="62% above") fill(p3,ph,color=#00FF00, transp=80, title="38% above") fill(p2,p4,color=#FF80FF, transp=80, title="62% below") fill(p4,pl,color=#FF00FF, transp=80, title="38% below") fill(ph,modeline,color=green, transp=90, title="going up") fill(pl,modeline,color=red, transp=90, title="going down")