These levels are based on price around day. I have implemented support for 2 calculation modes:
Mode 1: Level = (low of 1 day prior to + high of 1 day after ) / 2.0
Mode 2: Level = (hl2 of 1 day prior to + hl2 of 1 day after + close from 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
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.
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.
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.
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.