Levin Support Resistance

[skajake]

Got this idea from Larry Levin at secretsoftraders.com

The previous daily pivot point is calculated then dynamic support and resistence lines are plotted via the following formula:

Pivot Point = (High + Low + Close) /3

#1 high pivot = Pivot Point + (Pivot Point - Low)

#1 low pivot = Pivot Point - (High - Pivot Point)

#2 high pivot = Pivot Point + 2 (Pivot Point - Low)

#2 low pivot = Pivot Point - 2 (High - Pivot Point)

#3 high pivot = High + 2 (Pivot Point - Low)

#3 low pivot = Low - 2 (High - Pivot Point)

Example 1: Price finds support at low pivot #2 then later at low pivot #1

Example 2: Price encounters resistance at high pivot #2

Example 3: Price encounters resistance at high pivot #1

[skajake]

Example #3:

[FXMan77]

Thanks for this strategy.

I have an EA on S/R

but it is not so good..

[aelimian]

skajake:
Example #3:

Thank you for the indicator. Please how do you use the lines in trading?

Do you enter half way beyween the lines?

[skajake]

I am not actively trading with this indicator, but a system could be put together to identify reversal patterns near the sup/res lines. There are a number of candlestick patterns that could be used to identify such reversals.

[skajake]

Today GBPUSD finds support at low pivot #1 then low pivot #2.

[BlueWhale]

Very Interesting indicator,

I would like to see it on a 1 hour time frame, however I am having trouble downloading for some reason.

[G1235]

Below is an article from INO where Larry Levin explains how he uses the levels to trade off of.

You'll find his explanation below the formula...

How to Determine Where the Real Support and Resistance are Everyday

[myname]

With Murray math and pivots with a lot of pivot levels I have the following problem :

Draw some random horizontal lines (say : 10) within +- 1 ATR range from the daily open. Regardless of how randomly you draw them, during the day some will appear to act as support and resistance. That is simply a matter of probability. And that is why they are added "minor" support and resistance lines : to make it more credible