"All" Support/Resistance . Is this theoretically possible? - futures io
futures io futures trading



"All" Support/Resistance . Is this theoretically possible?


Discussion in NinjaTrader

Updated by cory
      Top Posters
    1. looks_one Sufyan with 7 posts (0 thanks)
    2. looks_two cory with 4 posts (0 thanks)
    3. looks_3 fminus with 2 posts (1 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
    1. trending_up 2,168 views
    2. thumb_up 3 thanks given
    3. group 3 followers
    1. forum 14 replies
    2. attach_file 5 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Thread Tools Search this Thread
 

"All" Support/Resistance . Is this theoretically possible?

  #11 (permalink)
toronto
 
Experience: Intermediate
Platform: metatrader
Trading: forex
 
Posts: 22 since Oct 2013
Thanks: 0 given, 31 received


cory View Post
no heat map just a mess of lines

Hi Cory,

Thats definitely more like it. Do those lines extend beyond the point where the fractal was broken? (I'll try it myself shortly to see if they do)

The "mess of lines" you mention appear that way on the chart you posted because of 3 reasons.

1) Theres not enough lines. (eg fractal level too high, or not enough historical data used).
2) The lines on the chart you posted are too thick
3) The lines on the chart you posted are too dark.

If you use a much lighter color (barely visible against the background when it is a single line), and set it to the thinnest possible line (and solid, not dashed), as many many lines are plotted, they begin to thicken and darken in the regions where they are clustured most, creating a clear picture of regions of high historical support/resistance.

You should get an effect like the one shown below. When that happens, then it becomes easier to see where historically price bounced a lot. It might be useful for things like anticipating potential chop and staying out of a trade.



Do you sorta see what effect i'm trying to go for?

Thanks

Reply With Quote

Can you help answer these questions
from other members on futures io?
Convert NinjaTrader NT7 indicator to Tradestation EasyLanguage and RADARSCREEN
Platforms and Indicators
Issue meeting order entry conditions
Elite Automated NinjaTrader Trading
Last 5 minutes Label
ThinkOrSwim
Moving average with Lag reduction
NinjaTrader
Linux?
ThinkOrSwim
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Spoo-nalysis ES e-mini futures S&P 500
470 thanks
VWAP for stock index futures trading?
48 thanks
Want your NinjaTrader indicator created, free?
46 thanks
Is Amp at risk of going under?
24 thanks
Risk of trading micro futures
19 thanks
 
  #12 (permalink)
Washington DC
 
Experience: Advanced
Platform: TT
Broker: Dorman
Trading: US Treasuries
 
fminus's Avatar
 
Posts: 126 since Sep 2009
Thanks: 156 given, 290 received

pardon my ignorance but why are you building something to tell you where to trade? If your system telling you to trade at a certain area, yet no one else sees those areas, and volume moves the market, wont' you just get run over? And wouldn't the coloring of those lines changes as you go back further in time and get more data? How far back do you go before they're significant?

In trading, shortcuts lead to the longest path possible.
Reply With Quote
The following user says Thank You to fminus for this post:
 
  #13 (permalink)
toronto
 
Experience: Intermediate
Platform: metatrader
Trading: forex
 
Posts: 22 since Oct 2013
Thanks: 0 given, 31 received



fminus View Post
pardon my ignorance but why are you building something to tell you where to trade? If your system telling you to trade at a certain area, yet no one else sees those areas, and volume moves the market, wont' you just get run over? And wouldn't the coloring of those lines changes as you go back further in time and get more data? How far back do you go before they're significant?

Hi fminus, theres no ignorance lol. Most of us are ignorant (myself included) and are just experimenting to try and figure something out.

Yes you are correct that how far back you go in time dictates how many lines appear on the chart.

One idea might be to stick only to charts that are in historically new waters. Namely stocks/currencies/futures etc that are trading at price levels they have historically never traded before (or at least traded very briefly before).

But for me im interested in this because I'm on a hunt to try and figure out areas of the chart where consolidations are least likely to occur. I'm a big fan of hedging techniques, and the death-blow to hedger's is when the price action consolidates for longer than you can stay liquid (because you are increasing position size more and more as price bounces around in a region. You need the price to move SOMEWHERE, anywhere so that you can recover your loses. If it simply chops sideways for too long, you will be in trouble.

So i've spent the last few months trying to gain some insight into this area.

While most people spend their time trying to gain an edge by anticipating highs/lows, im not that interested in finding highs/lows. I'm more interested in finding techniques that help me improve my chances of entering in a region where the price is less likely to chop sideways. I dont care if it goes up or down, I just need it to move.

This heat-map idea was one of those attempts. I wanted to see if regions that have been historically very dense have a tendency to chop around more than the lightly colored regions.


Last edited by Sufyan; February 17th, 2015 at 05:42 PM.
Reply With Quote
 
  #14 (permalink)
toronto
 
Experience: Intermediate
Platform: metatrader
Trading: forex
 
Posts: 22 since Oct 2013
Thanks: 0 given, 31 received

Update to cory,

Thanks cory, I tried the indicator you provided and tweaked the visual parameters to my liking. It is indeed what I was looking for.

Only problem now seems to be my computer is freezing because of data-overload.

I'll mess around with it more when I upgrade my cpu. Bought some new parts from amazon last week, and this is a good reason to finally get me off my ass and upgrading.

Reply With Quote
 
  #15 (permalink)
the coin hunter
virginia
 
Experience: Intermediate
Platform: ninja
Trading: NQ
 
cory's Avatar
 
Posts: 5,992 since Jun 2009
Thanks: 830 given, 7,815 received


Sufyan View Post
Update to cory,

Thanks cory, I tried the indicator you provided and tweaked the visual parameters to my liking. It is indeed what I was looking for.

Only problem now seems to be my computer is freezing because of data-overload.

I'll mess around with it more when I upgrade my cpu. Bought some new parts from amazon last week, and this is a good reason to finally get me off my ass and upgrading.

Set your horizontal line properties default to all chart then draw them on the 'heat map' chart, after that change number of days to a smaller number to save CPU but you still can see those levels'

Attached Thumbnails
Click image for larger version

Name:	2015-02-17_1841.png
Views:	24
Size:	19.7 KB
ID:	175238  
Reply With Quote



futures io Trading Community Platforms and Indicators NinjaTrader > "All" Support/Resistance . Is this theoretically possible?




Upcoming Webinars and Events
 

Bookmap

May 28
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts