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.
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//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;