I am sure this NEW INDICATOR can be done if someone has the time. It would be extremely helpful to traders who scalp as the illustration shows.
It is a CCI based support and resistance level indicator to show S&R levels.
When the CCI crosses
a. Above -89 a horizontal ‘ray type’ support in lime is drawn automatically,
b. Below -89 a horizontal ‘ray type’ resistance in red is drawn automatically,
c. Above zero a horizontal ‘ray type’ support in white is drawn automatically,
d. Below +89 a horizontal ‘ray type’ resistance in red is drawn automatically,
e. Above +89 a horizontal ‘ray type’ support in lime is drawn automatically, and
f. Below zero a horizontal ‘ray type’ resistance in red is drawn automatically.
The automatically drawn horizontal line on screen would be placed on the high of the previous candle in the case of resistance and on the low of the previous candle in the case of support.
The reason that extended trendlines are necessary, rather than S&R lines that stop where the chart stops, is that the indicator is hugely visual and the trader can see the build up to a bigger move.
When the price has broken the support or resistance the ‘ray type’ horizontal would end and stop at the candle that has broken it – to show choppy price areas/sideways movements to the trader.
Thanks
TEAMTRADER