I was wondering if any gurus came up with any breakout system based on Support and Resistance indicator? I believe it should be very possible with a decent S/R indicator. Let's make a holy grail out of this new indicator guys!
I've been playing with Barry's Support and Resistance, but only to find out that the indicator repaints the past 3 bars. When an indicator repaints the past, it will look so good on chart, but in fact it's totally different in real-time. If you've been fooled by ZigZag indicator, you'll know what I mean. But anyway, let's give a cool "Multiple Personalities" to the indicator that repaints the past.
One more thing about Barry's SR is that it is highly volatile (changes value too often). Support and resistance lines are supposed to be low volatile, right? Because of its high volatility, Barry's SR just allows too many false breakouts; too many that it shouldn't be called Support and Resistance.
So at the end of the day, I recoded the whole thing to get a slightly better S/R: single personlity and lower volatility. It's only slightly better, because my S/R is gonna lag 3 bars behind to cope with the so-called "multiple personalities." But it sure does guarantee static support and resistance. Once the level is located, it will stay the same for bars ahead.
See how good Super S/R is, compared to S/R (Barry).
