Support and Resistance Index {Fournier-Eaton}

This algorithm quantifies the amount of pressure applied by support and resistance and helps confirm trend initiation as levels, relative to horizontal supports and resistances are broken.

Look for spread in the red and green lines

• A low spread will usually indicate a rangebound stock as it is pressured on both sides equally by resistance and support
  
• A high spread will typically indicate a stock prepared to make a new directional move.
  
• A widening spread will indicate the continuation of a trend
  
• A narrowing spread will indicate the beginning of a reversal.
  

More succinctly:

• A large spread with RED OVER GREEN indicates a high probability of upward reversal -- think downtrend is exhausted.
  
• A large spread with GREEN OVER RED indicates a high probability of downward reversal -- think uptrend is exhausted.
  

Shape and relative values (wide green over red etc), not indicator values are of importance, are the most important.

Feedback is always helpful and I hope you find this useful.