Support And Resistance With Pivots – Amibroker AFL Code

Before beginning, one thing should be clear to you, our previous article on Pivot Point is quite different from today’s Pivot support-resistance. Hence, Pivot is a totally separate concept. The pivot point is a calculated Pivot while today’s topic covers Structural Pivot or often refers to Bar Count Reversals. At the end of the article, a free Amibroker AFL code will be provided. So, let’s start with support-resistance.

What is meant by the Support-Resistance?

Support

  • Generally, support means the entry point of a stock. From the support level, buyers can take an entry. Hence, support means below the level a stock has difficulty falling. Sometimes, falling price towards the support level indicates a test for the stock.

Resistance

  • Resistance generally considers as the exit or selling point of a stock. When a stock moves in an upward direction and reaches its highest point from where it turns around, refers to the resistance level. From the resistance level, price tends to move downward direction. Therefore, sometimes it considers as selling level.

What is Pivot?

The Pivot has nothing to do with calculations. It just deals with visual interpretation. Structural Pivot is nothing but a price-bar formation, widely-used in technical analysis. It indicates a clear real-time signal of support and resistance. The price bar has four segments, OHLC (Open, High, Low, Close). For the composition of Pivot, minimum three bars are needed. In order to show support-resistance, Pivot Low-high are used to draw trendlines. Here, support indicates Pivot Low and resistance is Pivot High.

How does it work?

  • Pivot High is surrounded by lower high and lower low.
  • Pivot Low is surrounded by higher highs, higher low.
  • The longer the trend before and after Pivot carries a higher significance.
  • In order to visualize the price pattern, Pivot helps to determine trendline.

Examples

amibroker afl code

The above chart displays in Amibroker after applying the Amibroker AFL code. The script is on BAJAJ AUTO share price 15 min. As you can see there is a clear indication of support and resistance level here. The green lines are the support while orange is resistance level.

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Download FREE Amibroker AFL Code

You can download the code by yourself. It’s quite easy to apply to the chart. Just copy the link and put it in formula editor of Amibroker. There is a FREE Amibroker AFL code given below.

Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.



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