Support Resistance

Support levels indicate the price where investors believe that prices will move no lower. In contrast, resistance levels indicate the price at which investors believe the price will move no higher. The user may change the input (close) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using Support Resistance

No trading signals are calculated for this indicator.

How To Access in MotiveWave

Go to the top menu, choose Study>Overlays>Support Resistance

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//high input = price, user defined, default is close
//period = user defined, default is 20
//prev = previous, sma = simple moving average
//LT = less than, LOE = less or equal
//MT = more than, MOE = more or equal
//supp = support, res = resistance

prev = price[index-1];
current = price[index];
sma = sma(index-1, period, input);
crossAbove = (prev LT sma AND current MOE sma);
crossBelow = (prev MT sma AND current LOE sma);
res = res[index-1]; 
supp = supp[index-1]; 
if (crossBelow) 
    // Calculate new resistance point
    res = highest(index,  period, HIGH);
end
if (crossAbove) 
    // Calculate new support point
    supp = lowest(index,  period, LOW);
end
if (res == null) 
      res = highest(index,  period, HIGH);
end
    if (supp == null) 
      supp = lowest(index,  period, LOW);
end
Plot1: supp;
Plot2: res;