BEST Algorithmic Supports and Resistances
Our BEST Algo S/Rs are universal. It means they display more than relevant S/R levels - accurate for all asset classes.
Whether we trade intraday, swing, scalp.. we assure you those S/R are crutial.
They have a few functions:
1. they define take profit levels
2. they're safeguards - letting the trader knows when a pullback is really necessary before jumping in a the trade.
3. once again are valid for Stocks/Crypto/Forex and Stocks + Commodities on pretty much all chart timeframes.
What are the included Supports/Resistances
- The Simple Moving Averages Multi Timeframes
Four Different types of Pivot Points Multi Timeframes
- Long Terms Levels Multi Timeframes
They work for all trading methods. Even if you're not using the Algorithm Builders, they work and are relevant for trading in general.
Algorithmic because they're universal/generic and useful for all asset classes/trading methods/trading styles.
✋ We built them so as they don't repaint
We shared some screenshots on our website and on TradingView.
Simple Moving Averages MTF
Definition: A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of time periods in the calculation average. A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by that same number of periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.
Definition: MTF means Multi-timeframe. This technique displays technical elements from a different timeframe in your chart.
A trader can either have dozens of tabs opened - one per timeframe. Or, having all the necessary technical analysis (TA) in one chart only.
In trading less is often better.
Less signals and less tabs opened => less actions to do => less doubt and confusion => less mistakes
Q: Are they all useful and be all considered before a trade entry/exit?
A: Absolutely YES!
Q: Are they all equally strong (in term of probability of reversal)?
A: NO. Each simple moving average (or SMA) has an attributed value and timeframe (example: SMA 100 W). Here 100 is the period length and W (weekly) the timeframe.
Those 2 levels (period length and timeframe) provide all we need to know regarding how cautious we should be when entering/exiting.
Q: What are the strongest SMA(s)?
Strong meaning here that the reversal probability after the first hit(s) is likely.
A: Glad you're asking this awesome question.
As said before, they're all important. But, the big timeframes (>= H4) are usually stronger.
The timeframe combined with the period length help us figuring out if:
- we should reduce our position sizing?
- we should decrease (or totally cancel) our leverage?
- we should take the trade or not.
Imagine buying a big timeframe resistance at the first touch on a Friday night 😃
Q: How do we take profits on them?
A: That's the tricky part. Sometimes they'll hit those SMAs, sometimes will come close to them (without a physical touch), but will reverse anyway.
There is no way to predict what's going to happen, and we don't have a crystal ball.
✋ That's why we give ourselves a bit of
error margin and setting our TPs a bit before the SMAs.
Q: Can we know where it will reverse when there is a cluster of multiple SMA(s)?
Short answer: no
Better answer: Otherwise trading would be too easy for us mortals.
Our method provides some capital and life saving guidelines though:
1. ✋ For an entry signal given right near a SMA MTF, wait for a pullback
2. ✋ If we touch it for the first or second time, wait for a bigger pullback
3. ✋ If the SMA timeframe is important, really wait for a bigger pullback if possible.
Q: Do we need to apply lower S/R timeframes on a bigger chart timeframe?
A: Not needed at all indeed. If you're charting with 5-minutes periods/candlesticks/bars, then only the SMA(s) with a timeframe >= 5m should be used.
Q: Do I only take profits on those S/R?
A: This is not our role to answer this question as it depends on:
- your performance goals for the day/week/month/year.
- if you'll be able to monitor (even if using some automation and trading bots).
Our BEST practice is to set a trailing stop once a price movement is going in the expected direction.. The art is... not activating it too soon nor too late.
We provide more guidance for our subscribers to master this subtle "art".
Pivots Standard MTF
Definition: A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment. The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction.
Q: Should they be used on top of the SMAs MTF for the Algorithm Builders frameworks?
For intraday trading (TF < 15-minutes based on our trading method), we use the Pivots Standard Daily.
They're very pertinent TPs levels and safeguards also.
✋ There isn't a concept of strengh/period length here (unlike the SMA(s)).
Though, the candles very often hit and reverse in the short-term on them.
Q: What are the Camarilla pivots?
A: Camarilla pivot points were discovered in 1989 by Nick Scott, a successful bond trader.
The basic thesis for this strategy is a common one: That price, as most time series, has a tendency to revert to its mean, right up until the point it doesn’t.
Q:What are the Fibonacci pivots?
A: Fibonacci Pivot Points start just the same as Standard Pivot Points. From the base Pivot Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.
Q: What are the Woodie pivots?
A: Woodie’s pivot points are made up of multiple key levels, calculated from past price points, in order to frame trades in a simplistic manner. The key levels include the ‘pivot’ itself, and multiple support and resistance levels (usually up to three each).
Long Term Levels MTF
Definition: Display the Daily/Weekly/Quarterly/Monthly/Yearly highest/lowest price points.
⚡ This one is not part of our trading method. Then optional.