In our Traders' Tip this month, we'll focus on the support and resistance oscillators detailed by Mel Widner in "Automated support and resistance." The EasyLanguage code shown uses two functions, WRO and WSO, to provide the calculations for the support and resistance oscillator.
Before creating the support-resistance indicator, the WRO and WSO functions must first be created and verified in the Power Editor.



Type: Function, Name: WSO
Inputs:
Strength(Numeric),
Length(Numeric);
Vars:
SCalc(0);

Array: Support[100](0);
Condition1 = SwingLow(1, Low, Strength, Strength+1) <> -1;
IF Condition1 Then Begin
For value1 = 100 DownTo 2 Begin
Support[value1] = Support[value1-1];
End;
Support[1] = Low[Strength];
End;
IF Support[Length] <> 0 Then Begin
SCalc = 0;
For value1 = 1 To Length Begin
SCalc = SCalc + IntPortion(Support[value1] / Close);
End;
WSO = 100 * (1 - (SCalc / Length));
End Else
WSO = 0;





Type: Function, Name: WRO

Inputs:
Strength(Numeric),
Length(Numeric);
Vars:
RCalc(0);

Array: Resist[100](0);
Condition1 = SwingHigh(1, High, Strength, Strength+1) <> -1;
IF Condition1 Then Begin
For value1 = 100 DownTo 2 Begin
Resist[value1] = Resist[value1-1];
End;
Resist[1] = High[Strength];
End;
IF Resist[Length] <> 0 Then Begin
RCalc = 0;
For value1 = 1 To Length Begin
RCalc = RCalc + IntPortion(Resist[value1] / Close);
End;
WRO = 100 * (1 - (RCalc / Length));
WRO = 0;
end




The two functions that were created can also be used for the long system entries described by Widner. Below is the EasyLanguage code for the entries that are based on the position of the WSO and the WRO. The suggested stops for the entries described by Widner can all be set in the Stops tab.




Type: System, Name: Support-Resistance

Inputs:
Strength(4),
Length(6),
AvgLen(30),
BuyLen(4),
BuyLev(95);

IF MRO(WSO(Strength, Length)>Average(WSO(Strength, Length), AvgLen),
BuyLen, 1) <> -1 Then Buy This Bar on Close;
IF Average(WRO(Strength, Length), AvgLen) Crosses Above
BuyLev Then Buy This Bar on Close;






This EasyLanguage code is also available at Omega Research's Web site; the name of the file is "SuppRes.ela." Please note that all Traders' Tips and techniques that are posted at the site can be utilized by either TradeStation or SuperCharts. Whenever possible, the posted analysis techniques will include both QuickEditor and PowerEditor formats.
-- Gaston Sanchez, Omega Research 800 422-8587, 305 270-1095
Internet: http://www.omegaresearch.com