Mel Widner - "In my article "Automatic support and resistance" in this issue, I present a computerized approach to finding support and resistance levels on a chart. To recreate the indicators and system described in my article using MetaStock for Windows, enter the following formulas:

Indicators:

S1: IF(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS) S2: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S1"),-1)) S3: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S2"),-1)) S4: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S3"),-1)) S5: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S4"),-1)) S6: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S5"),-1))

WSO: 100*(1?(Int(Fml("S1")/CLOSE)+Int(Fml("S2")/CLOSE)+Int(Fml("S3")/CLOSE)+Int(Fml("S4")/CLOSE) +Int(Fml("S5")/CLOSE)+Int(Fml("S6")/CLOSE))/6)

R1: IF(Ref(HIGH,-4)=HHV(HIGH,9),Ref(HIGH,-4),PREVIOUS) R2: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R1"),-1)) R3: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R2"),-1)) R4: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R3"),-1)) R5: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R4"),-1)) R6: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R5"),-1))

WRO: 100*(1?(Int(Fml("R1")/CLOSE)+Int(Fml("R2")/CLOSE) +Int(Fml("R3")/CLOSE)+Int(Fml("R4")/CLOSE) +Int(Fml("R5")/CLOSE)+Int(Fml("R6")/CLOSE))/6)

The indicators S1 through S6 and R1 through R6 should be plotted as points and not as a continuous line.

Trading System Formulas and Parameters: Enter long positions on either building support or sustained uptrend and exit position using stops. No short positions.

Enter Long: Fml("WSO") > Mov( Fml("WSO") , 4 , S ) OR Mov( Fml("WRO") , 30 , S ) > 95

Stop Out:

Breakeven stop: Floor level at 2%

Trailing stop: Profit risk of 10 Percent, ignoring 10 periods

Maximum loss stop: Maximum loss of 7%

Other Conditions:

Initial equity = 1000, Long positions only, Trade price = close, Trade delay = 0, Entry commission = 0%, Exit commission = 0%, , Interest rate = 5%, Margin req. 100%"

{WRO}R1:=If(Ref(HIGH,-4)=HHV(HIGH,9),Ref(HIGH,-4),PREVIOUS); R2:=If(R1=Ref(R1,-1),PREVIOUS,Ref(R1,-1)); R3:=If(R1=Ref(R1,-1),PREVIOUS,Ref(R2,-1)); R4:=If(R1=Ref(R1,-1),PREVIOUS,Ref(R3,-1)); R5:=If(R1=Ref(R1,-1),PREVIOUS,Ref(R4,-1)); R6:=If(R1=Ref(R1,-1),PREVIOUS,Ref(R5,-1)); WRO:=100*(1-(Int(R1/CLOSE) + Int(R2/CLOSE) + Int(R3/CLOSE) + Int(R4/CLOSE) + Int(R5/CLOSE) + Int(R6/CLOSE))/6); WRO;{WSO}S1:=If(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS); 
S2:=If(S1=Ref(S1,-1),PREVIOUS,Ref(S1,-1)); 
S3:=If(S1=Ref(S1,-1),PREVIOUS,Ref(S2,-1)); 
S4:=If(S1=Ref(S1,-1),PREVIOUS,Ref(S3,-1)); 
S5:=If(S1=Ref(S1,-1),PREVIOUS,Ref(S4,-1)); 
S6:=If(S1=Ref(S1,-1),PREVIOUS,Ref(S5,-1)); 
WSO:=100*(1 - (Int(S1/CLOSE) + Int(S2/CLOSE) + 
Int(S3/CLOSE) + Int(S4/CLOSE) + 
Int(S5/CLOSE) + Int(S6/CLOSE))/6); WSO;Mov(WRO,4,E);Mov(Mov(WRO,4,E),4,E);Mov(WSO,30,E);Mov(Mov(WSO,30,E),30,E);