Support and Resistance – Day Trading S/R Pro

Support and Resistance – Day Trading S/R Pro
Indicator for NinjaTrader® 8

E-mini S&P 500 Future 5 min chart (click to enlarge)
E-mini S&P 500 Future 5 min chart (click to enlarge)

Support / Resistance levels and features

  • Open/High/Low of Today
  • High/Low/Close of Yesterday and Yesterday – 1
  • Open of the Day, Open of the Week, Open of the Month, Open of the Quarter, Open of the Year
  • Price Action around the Open of the Day and High/Low/Close of Yesterday
  • Breakout and failed Breakout of the High/Low of Yesterday
  • Highest and Lowest One Hour Close from Yesterday (minute chart only)
  • Hourly Open (RTH or ETH Opens on a 5 minute chart only)
  • Reversals, Pullbacks, Breakouts and Tails around the Hourly Open Price (on a 5 minute chart only)
  • Touch of EMA 20 (Al Brooks – Moving Average 20 Gap Bar)
  • Gap Bar with EMA 20 (Al Brooks – Moving Average Gap Bar)
  • Possible Opening Setups on the 1st three bars of the day (up to 15 minute RTH chart only)
  • Possible Reversal Times for the E-mini (on a 5 minute RTH chart only)
  • Outside & Inside Bars (also Inside Bar variant)
  • Time Frame Continuity for higher time frames (on minute chart only)
  • Real-time signals (Calculate: On price change)
  • certain features do not work on:
    Volumetric, Range, Tick, Volume, Second
    HeikenAshi, Kagi, Renko, PointAndFigure and LineBreak charts
    Please try before you buy!

Example Charts


Download a 30 day trial version

 


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Support / Resistance

Support and resistance are important levels where lots of buyers and sellers are willing to trade a security. A support level is a level price tends to bounce off, find support as it falls. A resistance level is a level price tends to find resistance as it rises.
Although single lines look nice on a chart, levels need to be seen as zones.
Like Al Brooks is saying here “One of the most useful rules in trading is that if something resembles a reliable pattern, it will likely behave like the reliable pattern. In any case, nothing is ever perfect or certain, so close is usually close enough.”
Every swing point can be considered a potential support or resistance level, although major swing highs and lows hold more significance, as they are visible to higher time frame traders too. 

As a Day Trader horizontal Support and Resistance from the current and prior days are your main concern.
> Open/High/Low of today
> High/Low/Close of yesterday
> High/Low/Close of the day before yesterday
> Open of the week, the month, the quarter and the year
> Highest and Lowest One Hour Close from Yesterday

If price is close to the High/Low/Close of Yesterday, the Open of the Day and the Open of the Week Price Action at the corresponding support/resistance level can be highlighted.

Failed Breakout
At support/resistance levels one can often observe failed breakouts, where price penetrates the level, but then fails to continue in that direction and instead reverses.

Breakout Test or Pullback
If price continues through a support level, that level often becomes a new resistance level. The opposite is true; a broken resistance level often becomes a new support level.

Whipsaw
A whipsaw is highly volatile price action, that mostly forms around important support/resistance levels. Price is making sharp movements (multiple reversals) often in a tight trading range.

Dynamic Support/Resistance
If there are no daily support/resistance levels around the current price range (e.g. on a large gap) one can use the Hourly Open levels and/or the EMA 20 as dynamic support/resistance levels.

Below are a couple of examples of price action at support/resistance. I used the these colors for Open of the Day, High of Yesterday, Low of Yesterday, Close of Yesterday.

I’ve added the dots and diamonds to highlight the tails and 2BR the indicator is marking up. Tails and 2BR are marked up / highlighted with the same color as the Support/Resistance line.

Failed Breakout of the OOD
there are no two consecutive Closes below the level, two higher lows
Failed Breakout of the OOD and LOY, Tails at the OOW, three tails and two with a higher low
Breakout of the COY and Breakout Pullback/Test about an hour later
Failed Breakout of the OOD and Close back below HOY
Breakout Test HOY
Breakout Test COY
Two nice Breakouts with following Breakout Test
OOD and LOY
Large gap down, below the LOY
use the Hourly Open as Breakout Pullback/Test levels
Wedge reversal below LOY
Breakout Test of the Hourly Open
Large gap down, below the LOY
use the EMA 20 as a variable resistance level
Whipsaw around the LOY
micro Wedge just before the breakout lower

Hourly Open

Every Open is support and resistance. The Open of today as well as the Opens from the lower time frames like the 60/120/240 minute charts. Traders from these time frames are often active just before/at or after a new bar opens.
The indicator tries to find Reversals or Breakouts that happen around the Open of one hour bars. Pullbacks or Tails at these levels can be highlighted also.

The horizontal lines for the closed one hour bars have the colors of the corresponding one hour bars.  The line for the current one hour bar changes color according to the color of the current one hour bar until that closes.

If such a signal occurs at a local extreme a red or green triangle is added to the signal (1st and 3rd chart below).

EMA 20 (20 bar Exponential Moving Average)

Al Brooks uses the EMA 20 on his 5-minute charts as support and resistance to find pullbacks in a trend.
In strong trends a Pullback to the EMA 20 is often a high probability trade for a test of the extreme of the trend. Sometimes a 2nd or 3rd attempt of a Moving Average Gap Bar is necessary to continue the trend.

If price is close to the EMA 20, Price Action at that support/resistance level can be highlighted.

The indicator tries to find the following setups:

  • Touch of EMA 20 after 20 or more bars (Al Brooks – Moving Average 20 Gap Bar)
    Adjust the minimum number of bars away from EMA 20 as well as an envelope to front run and set an alert.
    After the set condition is met (e.g. price isn’t touching the EMA for more than 20 bars) the EMA changes color. A bar that touches the EMA or the set envelope after that is marked with “E”.
  • Gap Bar with EMA 20 (Al Brooks – Moving Average Gap Bar)

Read more here:
2 HM: If Away from EMA for Two or More Hours, Then Fade EMA and First EMA Gap Bar

https://www.brookstradingcourse.com
https://www.brookspriceaction.com/
https://www.brookspriceaction.com/portal.php?page=4

Bars / Opening Setups

The indicator tries to find Reversals, Trend Attempts and Breakout setups on the 1st three bars of the day.

Bull gap and trend attempt
look to get long
(signal on bar 2 and 2nd signal on bar 3)
Bear gap and trend attempt
look to sell
(signal on bar 3)
Bear gap and trend attempt
look to sell
(signal on bar 2)
Bull Reversal Bar on the 2nd bar of the day
Bear Two Bar Reversal on the 2nd bar of the day Inside Bar on the 2nd bar of the day
a breakout setup
(here more likely long)
Inside Bar on the 2nd bar of the day
a breakout setup
(here more likely short)
Inside Bar on the 2nd bar of the day
a breakout setup
an Outside Bar for the 1st bar of the day is often a trading range
watch for a fade (here a micro double top)

 Bars / Breakout HoY/LoY

The High and Low of Yesterday (HoY and LoY) are important levels where lots of buyers and sellers are willing to trade a security. The indicator shows breakouts of these levels (close above HoY and close below LoY) .
The bar after the breakout bar is an important indication for a successful or a failed breakout. A Follow Through (FT) bar with the same color as the breakout bar can be an indication for a successful breakout. A Follow Through bar with an opposite color can be considered a failed breakout.

Breakout of HoY and Follow Through bar Breakout of HoY and failed breakout
Bear gap, below LoY Bull gap, above HoY
Bear gap, below LoY
and Follow Through bar
Breakout of HoY and Follow Through bar
the next bar after the FT bar is a failed breakout signal

 Bars/Reversal Times

The regular trading hours (RTH) of a trading day can be broken down into three sessions. Morning, lunch and afternoon. The most important difference between the three parts is volume. Lunch time usually has the lowest volume. Trading a reversal during the morning and afternoon session often has a higher probability than trading it during lunch time.

10:30 am (EST) – Morning reversal, one hour into the RTH session
02:00 pm (EST) – Trend Day 11:30 Stop Run Pullback to Trap You Out (Al Brooks)
03:00 pm (EST) – Reversal into the close (occasionally)

Read more about Seasonality here:
Inside the Trading Day: Intraday Seasonality
What Is Seasonality In Trading? – The Robust Trader

Time Frame Continuity

Time Frame Continuity (TFC) tries to evaluate a trading instrument in terms of multiple higher time frames. E.g. as a day trader who is trading the 5 minute chart, identifying whether buyers or sellers are active on the 60 minute and on the daily time frame is pretty important.
Ideally, one wants to trade in the same direction as the higher time frames are indicating. If our trading instrument is trading above the opening prices of the daily and 60 minute bars one should look for setups to enter long. Vice versa for shorts.

The indicator can color the background of the chart if the 60minute and the daily time frame are in sync (bars have the same color).

  • prefer shorts, when below the Open Of the Day (OOD) and below the 60 minute open
  • prefer longs, when above the OOD and above the 60 minute open

What are the settings?

Indicator name: PADayTradingSRPro

Support/Resistance

  • Show H/L/C of Y – Show High/Low/Close of yesterday
  • Show H/L/C of Y-1 – Show High/Low/Close of the day before yesterday
  • Show HoD/LoD – Show High/Low of Day
  • Show OoD – Show Open of Day
  • Show OoW – Show Open of the Week
  • Show OoM – Show Open of the Month
  • Show OoQ – Show Open of the Quarter
  • Show OoY – Show Open of the Year
  • Show H/L 1h C of Y – Show highest/lowest 1h Close from Yesterday
  • Show COY 4pm – Show 4pm Close from yesterday (enter the number of bars back from the 1st bar of the new session or set 0 for no show)
  • Show Last SR Only – Show support/resistance for the last day only
  • Show Tails – Show Price Action at the OOD and High/Low/Close of yesterday
  • Tail Thickness – Width of tail
  • More/Less Signals (1-10) – 1=less and 10=more signals
  • Show Last Tails Only – Show for last 400 bars only

Hourly Open

  • Show Hourly Open on 5m chart – XX:00 for Globex and XX:30 for RTH trading hours
  • Use Globex Open on RTH – Use Globex (XX:00) 1h Bar for RTH trading hours
  • Show Reversals – Reversal around the Open of the 1h Bar
  • Show Breakout – Breakout around the Open of the 1h Bar
  • Show Pullback – Pullbacks to the Opening level of the 1h Bar
  • Show Tails – Price Action at the Opening level of the 1h Bar
  • Tail Thickness – Width of tail
  • Show Reversal at Extreme – Reversal/Breakout/Pullback at a local extreme of the chart (a red or green triangle is added to the signal)
  • More/Less Signals (1-10) – 1=less and 10=more signals
  • Show Last Only – Show for last 400 bars only
    The line style for the closed one hour bars can be set in the “Plots” section.

EMA 20

  • Show Touch – Bar that touches the EMA (or envelope)
  • Show Gap Bar – Bar with a gap between it’s H/L and EMA 20
  • Minimum Bars Away – Minimum number of bars away from EMA 20
  • Envelope for Touch (Ticks) – (above/below EMA) used only, if envelope in percent of yesterday’s range is zero set both envelopes to zero for a perfect touch
  • Envelope for Touch (Y Range %) – (above/below EMA) envelope in percent of yesterday’s range set both envelopes to zero for a perfect touch
  • Alert  – Sound alert
  • Alert Sound File
  • Show Tails – Price Action at the EMA 20
  • Tail Thickness – Width of tail
  • More/Less Signals (1-10) – 1=less and 10=more signals
  • Show Last Only – Show for last 400 bars only
    The line style for the EMA 20 can be set in the “Plots” section.

Bars

  • Show Open Bars – Show Reversals, Trend Attempts/Bars, IB2 and Outside Bars
  • Show Breakout HoY/LoY – Show breakout and failed breakout of HoY/LoY
  • Alert Breakout HoY/LoY – Sound alert
  • Alert Sound File
  • Show Gap as Trend Bar – Draw a large gap as a trend bar on the RTH chart
  • Show Reversal Times (E-mini RTH) – Show possible reversal times 10:30am and 2pm &/or 3pm EST
  • Show Outside and Inside Bar
  • Show Inside Bar Variant – Inside bar with a small overshoot of the prior bar
  • Show Last Only – Show for last 400 bars only

Time Frame Continuity

  • Show Time Frame Continuity – Show higher time frame bar colors
  • Show TFC of Day – Show higher time frame bar colors of day
  • Color TFC 1h/Day in Sync – Color background if both time frames are in sync

Colors and Text

  • Color of HoD/LoD, OoD, HoY, LoY, CoY, OoW …
    Set the colors and line styles for the daily levels, the levels from yesterday and the Opens of the higher time frames
  • Opacity of HoY/LoY/CoY-1
    Set the opacity for levels from the day before yesterday (20-255)
  • Line Thickness – For all support/resistance levels
  • Lines Highlight– When price is near a level
  • Lines Highlight ATR – ATR Divisor (ATR 10) for distance of price from a level to highlight the level
  • S/R Text – Show text at the right border of the chart
  • S/R Text Shift Right – Shift text to the right n bars (set right side margin in NT Chart Properties)
  • S/R Text Highlight Color – Color to highlight the S/R text
  • Font – For support/resistance level text
  • Color of Outside Bar / Inside Bar
  • Reversal Times Color – Background color
  • Bull Color – Color for bull signal
  • Bear Color – Color for bear signal
  • Hourly Tail Color
  • EMA Tail Color

“Show Last Only”

PADayTradingSRPro calculates “on price change” and uses a lot of processing power. That’s why it has a limit for the number of bars on a real-time chart.

If you see a message like that on your chart “please load less than 1000 bars, set the “End Date” of the chart to a date earlier than today or set “Show Last Only” please do the following:
For back testing set the chart End Date to e.g. yesterday. For trading (real-time chart) check the “Show Last Only” property in the indicator settings, which will speed up a reload of the chart and indicator.

NinjaTrader 8 has problems on charts with many chart object, especially, if it’s a real-time chart where ticks coming in fast, NT7 doesn’t.
https://ninjatrader.com/support/forum/forum/ninjatrader-8/indicator-development/1053732-indicator-takes-a-lot-more-time-to-calculate-loaded-on-the-current-day

 

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