/******************************************************************************** Title: Horizontal Trading Range Boundary Lines for eSignal By: TFC and Divergence Software, Inc. Web: http://www.sr-analyst.com ======================================================================================================== Project Description: Steve Rhodes from TFNN.com often features this formula on his Tiger TV shows The Trader's Edge and The Money Masters at 9am and 10am US Eastern time on weekdays. The formula is a complex Support and Resistance indicator that identifies the horizontal trading range boundary lines (or HTR lines) based on the two most common collocated price levels of the open and close prices. By default the indicator displays the HTRs based on the Monthly interval. The formula may be applied to any chart interval and can display HTR lines for Monthly, Weekly, Daily, and/or intraday intervals simultaneously. The intraday HTRs can only be displayed on intraday chart intervals, however. The distance between the two primary HTR levels reliably identifies the typical amount of price movement that occurs before a market runs into the next area of significant support or resistance. This price distance is projected above and below the primary range to be used for analyzing the future price behavior. HTR lines that appear above price represent resistance and the HTR lines below price represent areas of support. This indicator can be an excellent complement for any trading strategy by providing additional confirmations to your strategies trade signals. For example, if you receive a buy signal on a strategy and the price bars are showing you that they have also recently bounced off of an HTR line of support, this buy signal has a stronger probability of moving in your favor. You could also use the next HTR level above the current entry price to help confirm your target exit price levels. There are a few very important usage points you need to understand to get the most out of this formula. Most importantly, you will need to create a custom time template to load appropriate amounts of data for the various intervals being used. The default Auto time template will not provide enough data. You should force the chart to use at least 1000 bars of data at a minimum. You could set up a simple time template that loads a fixed number of bars for all intervals. However, we recommend that you spend some time looking at each interval (D, W, and M) for the specific market you intend to follow and create a specific time template for the market. You can even name the time template for the market. For intraday intervals a 1000 bars is going to be good enough for most markets. For the D, W, and M intervals you should bring up a chart starting with 1000 bars of data and visually check to see that there are at least two significant areas of price consolidation (sideways markets). More is better, but too many can also make the HTR less reliable. Once you've found the right amount of data (2-6 consolidation areas) set this number of bars to load in your time template for that specific interval. You can also use a start date. Either way, you will want to revisit this process every so often and update the time template settings. As an example for ES #F, you could use Jan 1 1995 as the start date for the Monthly interval, Jan 1, 2004 for the Weekly/Daily intervals and 2000 bars for the intraday intervals. Midpoint Divisions, or subdivisions of the HTR lines identify areas of support and resistance as well, but tend to be weaker than the HTR Boundary lines. Price often slows down momentarily around these levels before moving on to test the next HTR level. The 1/2 division is most common for D, W and M intervals, but we've added the ability to set the level of divisions up to 1/8ths. The divisions beyond 1/2 really only need to be used depending on how the indicator found the two primary HTR lines. Sometimes, due to the lack of data loaded in the chart the two primary HTR lines can be too far apart. This happens more often on intraday intervals. It doesn't mean that the two primary HTR lines are not significant. In these cases, the price range where the weaker areas of support and resistance will be present at more than 1/2 divisions of the two primary HTRs. Change this settings to smaller subdivisions until they line up closer the other areas of smaller consolidate periods between the two primary HTRs. Once you've found this, now you will have future midpoint projected levels that should be more reliable in identifying intraday support and resistance levels. When using multiple intervals of HTRs on the chart simultaneously, you will often see HTR lines from the different intervals lining up at or near the same price levels. These areas are the strongest areas of support and resistance. Indicator Parameters: ==================== Display Monthly: Enable/Disable the display of the Monthly HTR lines. HTR Labels: Enable/Disable the labels that appear to the right of the price bars. Scroll chart to the left or increase the right margin in the chart to view. Midpoint Divisions: Set the amount of subdivisions to view between HTR lines [1/2, 1/3, 1/4, 1/5, 1/8]. Default is 1/2. Midpoint Labels: Enable/Disable the display of the Midpoint lines. Range Start Date: Set the start date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Range End Date: Set the end date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Label Text: Text color for the labels. Monthly HTR: Line color for the two primary HTR lines. Monthly Boundary Lines: Line color for the Monthly Boundary lines. Display Weekly: Enable/Disable the display of the Weekly HTR lines. HTR Labels: Enable/Disable the labels that appear to the right of the price bars. Scroll chart to the left or increase the right margin in the chart to view. Midpoint Divisions: Set the amount of subdivisions to view between HTR lines [1/2, 1/3, 1/4, 1/5, 1/8]. Default is 1/2. Midpoint Labels: Enable/Disable the display of the Midpoint lines. Range Start Date: Set the start date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Range End Date: Set the end date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Label Text: Text color for the labels. Weekly HTR: Line color for the two primary HTR lines. Weekly Boundary Lines: Line color for the Weekly Boundary lines. Display Daily: Enable/Disable the display of the Daily HTR lines. HTR Labels: Enable/Disable the labels that appear to the right of the price bars. Scroll chart to the left or increase the right margin in the chart to view. Midpoint Divisions: Set the amount of subdivisions to view between HTR lines [1/2, 1/3, 1/4, 1/5, 1/8]. Default is 1/2. Midpoint Labels: Enable/Disable the display of the Midpoint lines. Range Start Date: Set the start date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Range End Date: Set the end date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Label Text: Text color for the labels. Daily HTR: Line color for the two primary HTR lines. Daily Boundary Lines: Line color for the Daily Boundary lines. Display Intraday: Enable/Disable the display of the Intraday HTR lines. HTR Labels: Enable/Disable the labels that appear to the right of the price bars. Scroll chart to the left or increase the right margin in the chart to view. Midpoint Divisions: Set the amount of subdivisions to view between HTR lines [1/2, 1/3, 1/4, 1/5, 1/8]. Default is 1/2. Midpoint Labels: Enable/Disable the display of the Midpoint lines. Range Start Date: Set the start date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Range End Date: Set the end date (mm/dd/yyyy) of the data range to calculate the HTR lines from. Leave blank to use all data loaded in the chart. Label Text: Text color for the labels. Intraday HTR: Line color for the two primary HTR lines. Intraday Boundary Lines: Line color for the Intraday Boundary lines. HTR Line Type: Line type for the two primary HTR lines. Default is Solid. Thickness: Line thickness for the two primary HTR lines. Default is 4. Boundary Line Type: Line type for the HTR Boundary lines. Default is Solid. Thickness: Line thickness for the HTR Boundary lines. Default is 2. Midpoint Boundary Line Type: Line type for the Midpoint Boundary lines. Default is Dot. Thickness: Line thickness for the Midpoint Boundary lines. Default is 2. Label Font Size: Font size for all HTR labels. HTR Strength: Enable/Disable the display of the strength count for the HTR lines next to the price labels. Disclaimer: For educational purposes only! Obviously, no guarantees whatsoever and use at your own risk. *******************************************************************************************************/