LazyBear

Support/Resistance Levels based on earnings day price

NASDAQ:AAPL   APPLE INC
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Earnings S/R Levels [LazyBear]


These levels are based on price around earnings day. I have implemented support for 2 calculation modes:

Mode 1: Level = (low of 1 day prior to earnings + high of 1 day after earnings ) / 2.0
Mode 2: Level = (hl2 of 1 day prior to earnings + hl2 of 1 day after earnings + close from earnings day) / 3.0

Chart above shows "Mode 1". Mode can be changed via options page.

This indicator was requested by user @mika2k1ff. I learnt more about this idea from @DanV and @TimWest (Thanks guys :)). BTW             , TimWest has an indicators package, "Key Hidden Levels", that has this and more.

Do let me know how you use this, I am very intrigued by the potential this idea shows. Thanks.

For a complete list of my indicators:
- GDoc: https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
- Chart:
Master Index: List of all my indicators

Earnings day price as S/R level? What is the logic behind it?
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LazyBear PRO joe_vijay
You may want to talk to one of the users I mentioned above.
+3 Reply
timwest PRO joe_vijay
@joe_vijay You can review the many charts I have published @timwest that explain how and why it works.
+1 Reply
I do not want to spoil the hidden levels or ER s/r levels technique in any way. There is a technique that is used in some very advanced trading platforms that reminds of the hidden levels or ER s/r levels described here and under a different name that I will not disclosed and It has nothing to do with earnings.
You know, at some point any line drawn on a chart will be touched, eventually :) but very few have valuable positions on chart- and this is the intent to find the "hidden levels" / supports and resistances.
I am attaching the same chart you posted where I kept the automated ER levels and I draw my hidden levels- just for comparison.
snapshot

As we can notice, few ER levels are near my hidden levels (coincidence?) but the very important ones are missing. Hidden levels of s&r are about pattern and not ER.
+1 Reply
LazyBear PRO sublimares2
Thanks for you comment sublimares2.

I don't know if this S/R idea can be trivialized like "even random lines get touched" (note I am just a trading newbie, so I may be totally wrong :) ), but even a quick visual testing shows there is some value to these levels.

I do find all these "hidden levels" pretty fascinating, though. If you have any more data on your hidden levels idea, I'd love to hear that.

+3 Reply
sublimares2 LazyBear
Hidden levels are useful when they are plotted at the right time and level. As you described above, what the system is plotting is merely a range and not at all the hidden levels. In no way, shape or form this contain hidden levels: 1) wrong concept (its more an unuseful 2 day pre- ER RANGE and not hidden supports/resistances) and 2) even IF some of the levels by chance are plotted at the level of a hidden s/r is unuseful because of the time of plotting (by that I mean the place on the chart).
I am not into visual testing. I need logic and some action (results) to advance the theory. I do not see any value in this one. Sorry.
snapshot
+2 Reply
u r a trading newbie.. r u kidding..how come u can program code so many indicators without knowledge.. I dont believe this.. I m sure u must have made many millions.... If only I knew coding.. .. I appreciate ur work.. amzing work dude..
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LazyBear PRO MONEYMENOW
yes..I am still a trading newbie, still learning. I use the process of developing/tuning indicators as a means to understand the price mechanics better.

BTW, I am not a full time trader...no millions here.
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Great Post
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How about more stocks ? Would like to see you use some of these indicators to forecast, that way we know if they work. Who knows maybe if they have a 70%+ winning %, people might want to have/pay for exclusive rights to those indicators/overlays.
+3 Reply
love it
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Sublimares... those lines are no different than pivot points. They don't work 100% of the time but if you have been using pivots for any length of time you will see that there are reactions at those levels. Same with option levels and earning levels. They act as magnets more often than not to attract and reject price. Since my game is about probabilities they are clearly a nice tool in my tool box.
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