Hi,
This is my first time posting here and I'm not 100% sure this is the correct category. If not, please direct me to where I should go. I'd love to get deeper into all this. Anyways, to the problem.
When analyzing a price chart, traders know that levels where prices reverse are significant. The more times prices reverse at a level, the more significant it is. These levels are known as support and resistance levels. Obviously, when price reacts at these levels it's seldom the exact same level. However, it will be within a range of the level. Rather than think of it as a specific level, we can consider it an area.
I am able to record all the turning points myself. This in itself is very subjective so the support and resistance levels will be relative to my own identification of the turning points. So, once I've got a list of these turning points, is there a formula or function I can use to identify the most "popular" areas?
I know there are a lot of variables here. I just thought I'd start with this and see what I learn then go from there. To help illustrate my goal imagine that I have listed the following levels:
2, 9, 21, 18, 17, 16, 35, 68, 72, 66, 70, 99
Just looking this over quickly you can see there are a couple areas of significance. The area around 18 and the area around 70. I'd like to input all the levels, and input a formula into excel to identify the groups that are close together then create an average of those groups. That, I believe will be how I can identify these levels.
Any help is appreciated. Thank you in advance.
This is my first time posting here and I'm not 100% sure this is the correct category. If not, please direct me to where I should go. I'd love to get deeper into all this. Anyways, to the problem.
When analyzing a price chart, traders know that levels where prices reverse are significant. The more times prices reverse at a level, the more significant it is. These levels are known as support and resistance levels. Obviously, when price reacts at these levels it's seldom the exact same level. However, it will be within a range of the level. Rather than think of it as a specific level, we can consider it an area.
I am able to record all the turning points myself. This in itself is very subjective so the support and resistance levels will be relative to my own identification of the turning points. So, once I've got a list of these turning points, is there a formula or function I can use to identify the most "popular" areas?
I know there are a lot of variables here. I just thought I'd start with this and see what I learn then go from there. To help illustrate my goal imagine that I have listed the following levels:
2, 9, 21, 18, 17, 16, 35, 68, 72, 66, 70, 99
Just looking this over quickly you can see there are a couple areas of significance. The area around 18 and the area around 70. I'd like to input all the levels, and input a formula into excel to identify the groups that are close together then create an average of those groups. That, I believe will be how I can identify these levels.
Any help is appreciated. Thank you in advance.