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Levels indicator

  #13 (permalink)

Melbourne, VIC, Australia
Trading Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: SPI
Posts: 123 since Dec 2010
Thanks: 135 given, 59 received

Fat Tails View Post
Some ideas:

If you draw monthly highs and lows on your chart, this will probably work with stocks, but may not work with futures. The reason here are the rollover offsets that are just for backadjusting data. Some contrats such as CL are backadjusted every month, and a high / low from February has been already backadjusted 6 times now, and even worse there is no precise rule for determining the rollover offset.

However, if you ask for daily highs and lows, such as the highs and lows for the last 4 days, it would typically not be affected by backadjustment.

You could also have a look at naked highs and naked lows - only displaying highs and lows that have not been taken out by price action.

You could apply a swing indicator that uses swing strength or minimum deviation to identify highs or lows. Everything is possible, but you need to decide which potential support and resistance levels you wish to display.

@Fat Tails,

Great suggestion - did not think of the rollovers for Futures but very often I can see old levels being hit - regardless of the backadjustment. Some levels are 2 years old and are hit to the tick!
Naked highs and lows - will have a look at this one.
Worst case scenario - always can do it manually - but idea of the indicator sounds simple, if I could code it.

Many thanks for suggestions and help,

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