Discussion of article "Automatic construction of support and resistance lines"

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New article Automatic construction of support and resistance lines has been published:

The article deals with automatic construction of support/resistance lines using local tops and bottoms of price charts. The well-known ZigZag indicator is applied to define these extreme values.

Support and resistance lines are plotted via local peaks and bottoms of price charts. To determine these extreme values, we will apply the well known ZigZag indicator. We can set the necessary properties for support and resistance lines in its inputs.

The scale of lines can be changed using the parameters of the ZigZag indicator, but you can apply the same parameters on different timeframes. This allows us to obtain the extreme values we need to build support and resistance levels.

The images below show how the extreme values change with the change of a timeframe. The first image displays the minute chart encompassing a period of thirty minutes, the second one covers four hours.


Author: Vladimir Mametov

 
Too wise for a 2% profit for the year.
 

The article deals mainly with the construction methodology and one of the basic Expert Advisors is made on its basis.

Why 2% profit percentage? Let's take Euro, profit 117.20 on 10 000 and drawdown 0.69%. With a lot 10 times bigger or a deposit of 1000 the profit would be 17.2%, with a drawdown of 6.9%. But this is only in this EA and with these settings. If desired, this profit can be increased by an order of magnitude.

 

The current call of the standard zigzag in the indicator does not work. Error 4802. It should be changed to

   ZZ_handle=iCustom(_Symbol,_Period,"Examples\\ZigZag",ExtDepth,ExtDeviation,ExtBackstep);

In general, a big plus for the implementation of the idea, there is something to work on and twist.

 
Mikhail Chistyakov:

The current call of the standard zigzag in the indicator does not work. Error 4802. It should be changed to

   ZZ_handle=iCustom(_Symbol,_Period,"Examples\\ZigZag",ExtDepth,ExtDeviation,ExtBackstep);

In general, a big plus for the implementation of the idea, there is something to work on and twist.

Replaced the attached file Trendlines.mq5, thanks.

 
What, I can not understand, when running the Expert Advisor through debugging, on the screen instead of lines and zigzag, there are points on the high, low! Can you give me a hint?
 
The high and low points are the reference points of a standard zigzag (to avoid drawing the whole zigzag). Trend lines are drawn according to the logic described in the article. The only pity is that the author did not give a detailed description of the indicator parameters affecting the drawing of trend lines (although the theory is described in the article), so you need to twist and turn it to suit your needs.
 
Quote: "Support and resistance lines are built through local maximums and minimums of price charts" and add from me, for example, "for the last 120 minutes". All the rest of the text can be thrown out, and about ZigZag, and about MACD, etc. Simplify the scheme. 100 indicators are like 100 people carrying one bucket of water together, you can't carry it a hundred times faster. Even if you listen to me, you will get only a BB indicator.
 
Vasily Belozerov:
Quote:"Support and resistance lines are built through local maximums and minimums of price charts" and add from me, for example, "for the last 120 minutes". All the rest of the text can be thrown out, and about ZigZag, and about MACD, etc. Simplify the scheme. 100 indicators are like 100 people carrying one bucket of water together, you can't carry it a hundred times faster. Even if you listen to me, you will get only a BB indicator.

A few years ago I came to the conclusion that you should build by bodies[Open <> Close], not [High <> Low]

 
I tend to believe that bodies are important only on large timeframes, and inside the day this noise can be useful....
 
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