Support and resistance bands
Support and resistance bands - is a unique indicator that draws a channel, relying on historical values of support and resistance levels. You no longer need to independently determine what level of support and resistance is currently relevant, the indicator will automatically determine the level closest to the price and display it on the graph in the form of the upper and lower bands.
- Unlike the Bollinger Bands indicator, this indicator builds the channel bands based on the previous values of the price extremes (support and resistance levels).
- The indicator automatically determines the level of support and resistance closest to the price, you do not need to clutter the chart with numerous lines.
- The indicator is able to predict the next level of support and resistance in the trend areas of the chart.
- extremum detector period - the period of the price extremum detector. The longer the period, the more powerful peak prices are taken into account in the indicator algorithm.
- number of extrema - the number of price extrema for calculating the indicator. The larger this parameter, the higher the accuracy of the construction of the upper and lower bands of the indicator. Large values of this parameter can greatly slow down the indicator.
- band shift - this parameter is responsible for drawing additional upper and lower bars of the indicator. If this parameter is 0, then no additional indicator bars are displayed. If the value of this parameter is positive, additional indicator stripes are displayed, usually located further from the main bands. Additional indicator bands are also calculated on the basis of support and resistance levels, however in this case the closest N levels do not participate in the calculations, where N is the number equal to the band shift parameter.
- use middle line - the flag responsible for displaying the midline of the indicator. If the parameter is true, then the middle line of the indicator is displayed. The average line of the indicator is calculated by the formula (up + dn) / 2, where up and dn are the values of the upper and lower bars of the indicator.
- midline calculation mode - this parameter determines, by what kind of bands of the indicator, the value of the midline will be constructed. If the parameter is true, then the middle line is calculated by additional indicator bars, if the value is false, then the average line is calculated by the main bands of the indicator.