Work has been keeping me busy but I found sometime to figure out how to autogenerate support and resistance lines. I cobbled together some code I found online and then made a simple plot. I’m doing this to help me identify the ‘zones’ in Forex (mostly) and see if I can automate a trading bot to make trades for me.
Here’s a chart from two years worth of daily S&P500 closes. On the surface, the lines look pretty decent but the real trick is figuring out what the right lookback period should be. Here my lookback period was 20 days.
There’s more work to be done, I have to fix the x-axis to show the dates and get a larger time period. I’m even testing automating this script into some dashboard. Right now you can see a crappy jpg of the EURUSD currency pair on my labs site.
The generic code to build these support and resistance lines is here.