Signals Pirate™ Support & Resistance
The simplicity of this package ensures traders of all levels of expertise can utilise this tool and experience its benefits to the fullest. The 2 variables within the tool are the ‘Multiple’ and ‘Lookback’:
The ‘Multiple’ simply takes into account higher levels of S/R before plotting, so a default value of 0 gives the nearest levels of S/R whereas a value of 10 will give the furthest levels you should be taking into account.
The ‘Lookback’ increases the period of history that will be taken into account when calculating the levels. As this tool is calculated using a multitude of different timeframes, and a combination of Pivot Points & High/Low levels to determine the most crucial levels, you can think of increasing the ‘Lookback’ length as prioritising higher timeframes than the one you are currently using. The default length of 1 will calculate key levels using data mainly derived from the current and closest timeframes to what the chart is currently using.
The default settings are the best settings we’ve found so far but you can change them to build your own unique trading strategy. We’d recommend experimenting with these values to find the best results for the asset you are trading, and your own personal trading style.
Direction for use:
1. Use on any asset class and time frame.
2. Fine tune the ‘Multiple’ and ‘Lookback’.
3. Watch for price action responding to the key levels of Support & Resistance.
4. Considering entering long positions with confluence as price approaches key support, and consider entering short positions with confluence as price approaches key resistance.
5. Plan your trades to take complete or partial profits at the next level of S/R, and think about closing your trades as price moves against you and breaks key levels of S/R.
As mentioned previously, this S/R tool uses a multitude of S/R detection tools that dynamically operate to function with superior accuracy regardless of what you’re trading. The settings also accommodate and support enough customisation to provide functionality to all types of trades, from scalping to long term investing.