Support Resistance Solver

The Support Resistance solver evaluates the proximity of price to a support/resistance line, that is selected by the 'Select Type for S/R Line' settings. This solver can evaluation support/resistance (S/R) in two opposing modes. Headwind or Tailwind. Headwind mode identifies if there is enough clearance/room to trade towards an S/R line. The closer price gets to S/R the more "headwind" it encounters, and thus it is less desirable to trade in that direction. Tailwind mode identifies if price is close or near enough to S/R for a possible bounce away from it. Bounce trades near S/R are more desirable, because a S/R line can act as a tailwind pushing price away.

BloodHound v2

This section is specific to BloodHound v2. Scroll down for BloodHound v1.

Properties tab

This tab contains the essential settings for all nodes.

Modifiers

Click to see documentation

This section provides quick access to commonly used output modifiers.
Please note: The buttons only modify the individual instance of the selected node(s) on a Logic Board. Thus, the buttons are only visible when a node is selected on the Logic Board. The buttons are not available when a solver is selected in the Solvers panel, because the original solver's output can not be globally modified.
This behavior is consistent with adding a function node afterwards, so that the original solver's output remains unmodified elsewhere in the system. It is similar to having an SMA(50) on several charts. Changing the plot color on one chart does not modify the plot color on the other charts.

Enable button

Invert button

Swap button

Global Properties

These setting apply to all instances of the selected solver. Changing a setting in one of the instances changes the setting in all instances. If you only want to change one of the solvers, but not the others, you must make a copy of the solver. The copy will be a different solver, and a number will be added at the end of the name to differentiate it from the original.

Behavior

This option determines which outputs are calculated. Effectively turning off either the Long or Short output.

Evaluate

Options

Price to S/R Line Mode

Select the solver’s operational mode.

Price Far Away from S/R (formerly Headwind)
This mode examines support and resistance in the context of a force working against your trade going towards s/r. i.e. If you are considering a long trade, and there is a s/r line above, that s/r line typically acts as resistance(a headwind) against your trade. The closer price gets to the s/r line the less desirable it is to take that long trade. This mode identifies if there is enough clearance/distance to trade into the nearest s/r line that may be above or below.
A long output is produced when price is far enough away from the nearest s/r line above price. A short output is produced when price is far enough away from the nearest s/r line below price. The desired clearance needed to trade into a s/r line is set by the Output » Minimum Distance and Ideal Distance settings.

Price Near S/R for Bounce (formerly Tailwind)
This mode examines support and resistance in the context of a force working for a bounce trade away from s/r. i.e. If you are considering a long bounce trade off of a s/r line, that is underneath price, it is desirable for price to be a short distance away from the s/r line. This mode helps identifies when price is close enough to a s/r line to initiate a bounce trade.
A long output is produced when price is above the s/r line and within that close range. A short output is produced when price is below the s/r line and within that close range. The desired distance between price and the s/r line required to take a bounce trade is set by the Output » Ideal Distance and Maximum Distance settings.

Select Type for S/R Line

This selects what is used for the support/resistance lines.

Use an Indicator
This uses indicator plots for the s/r lines. This solver can use multiple plots from an indicator simultaneously, such as the Pivots indicator which has seven plots.

Use Lin. Reg. Channel
This uses the (Linear) Regression Channel's channel lines as support/resistance. The Period and Width settings will appear after this mode is selected.
Price Far Away from S/R mode: In this mode, when evaluating a long condition the upper channel line is resistance. A long output is produced when price is toward the bottom of the channel and the Ideal Distance away or further from the upper channel line. When evaluating a short condition the lower channel line is support. A short output is produced when price is toward the top of the channel and the Ideal Distance away or further from the lower channel line.
Price Near S/R for Bounce mode: In this mode, when evaluating a long condition the lower channel line is support. A long output is produced when price is near the bottom of the channel and within the Ideal Distance from the lower channel, for a potential bounce upward. In this mode, when evaluating a short condition the upper channel line is resistance. A short output is produced when price is near the top of the channel and within the Ideal Distance from the upper channel, for a potential bounce down.

Use Price Interval
This uses equally spaced and fixed imaginary s/r lines.

In Headwind mode, this sets the solver’s Long output value when price is below resistance and equal to or greater than Distance → At Ideal Distance. When price is above support this sets the solver’s Short output. Tailwind Mode In Tailwind mode, this sets the solver’s Long output value when price is below resistance and within Distance → At Ideal Distance. When price is above resistance this sets the solver’s Short output.

At Min or Less

At Max or More

No Sup/Res (Breakout)

In Headwind Mode If set to 1, when price is above all support/resistance lines a Long output will occur (allowing for Long signals). And, when price is below all support/resistance lines a Short output will occur (allowing for Short signals). If set to 0, no Long output will occur when price breaks above all support/resistance lines, and no Short output will occur when price breaks below all support/resistance lines. In Tailwind Mode If set to 1, when price is below all support/resistance lines a Long output will occur (allowing for Long signals). And, when price is above all support/resistance lines a Short output will occur (allowing for Short signals). If set to 0, no Long output will occur when price breaks below all support/resistance lines, and no Short output will occur when price breaks above all support/resistance lines.

Options tab

This tab contains extra secondary settings common to all nodes.

Weight

Click to see the Weight documentation

This section is used to modify the node's final output value. It is only useful for designing fuzzy logic systems, or a fuzzy logic section of a system.
Please note: The Weight controls only modify the individual instance of the selected node(s) on a Logic Board. Thus, the Weight controls are only visible when a node is selected on the Logic Board. The controls are not available when a solver is selected in the Solvers panel, because the original solver's output can not be globally modified.
This behavior is different than BloodHound 1.0. In BH 1.0, the Weight controls modified the nodes output globally (every instance). This change in BH 2.0 adds more system design granularity.

Multiply Output: This takes the internal values (the Long and Short values determined via the Properties tab » Output Rules section) and multiplies them by this value. Note: the final output will not exceed a value of 1, as described in the Slider control below.

Slider control: The slider constrains the final output to a value of 0 to 1. The left side of the slider sets a minimum value that is output regardless if the solver condition is true or not. The right side sets a maximum value that is output. The output is capped.
e.g. Three indicator conditions are being checked, and thus three solvers are created. Only two out of the three indicator conditions are needed. An Additive logic node is used to add the solver's outputs together. Just two out of the three solvers need to add up to a value of 1. Therefore, the right slider (max output value) for all three solvers is set to 0.5. When two indicator/solver conditions are found, thus the outputs = 0.5, then the calculation, in the Additive node, is 0.5 + 0.5 + 0 = 1. A value of 1 means the two out of three condition is true.

Hedge Operation: This applies a mathematical formula to the internal value.

None: No modification is applied.
Very (square output): A squaring formula is applied. Output = value^² .
Somewhat (square root output): A square root formula is applied. Output = √value .

Description

This text area provides a place to write a full description of what the node is doing, used for, or what ever you want.
Note: The Description is global to all instances of the node. It is not applied individually to each instance as the Weight controls are.

Help tab

This tab displays the documentation page (from this web site) of the selected node.
Please note: NinjaTrader v8.0.26.0 or newer is required for the built in web viewer to work, and thus the documentation to be displayed.

Video Tutorial

This video is from our weekly Workshop titled Revisiting the Support Resistance solver, on Oct 4th, 2013.
For more benefit please watch in full screen mode, as this video is recorded in HD.

Examples

Example 1A: The Basics of Headwind

This demonstrates the basic function of Support Resistance solver in Headwind mode. This Solver will be used with a EMA 100, acting as support/resistance, to detect a distance of at least 30 ticks to the support/resistance line. This could be used to validate there is enough distance to take a trade Long toward resistance or Short toward support.

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Note in these charts that the Long & Short Threshold in the Signals Properties are set to 0.99. A signal is given when price is 30 ticks or more away from support or resistance.

Example 1B: The Basics of Tailwind

This demonstrates the basic function of Support Resistance solver in Tailwind mode. This Solver will be used with a EMA 100, acting as support/resistance, to detect when price is within 2 ticks of support or resistance. This could be used to detect a potential price bounce off of support or resistance.

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Ideal Distance to 2 Ticks
Set Maximum Distance to 10 Ticks
Set No Sup/Res to 0

The chart below shows a signal when price is within 2 ticks of the EMA 100.

Example 2A: Pivots and Headwind

This demonstrates the Support Resistance solver using Woodies Pivots in Headwind mode. When multiple support/resistance lines are used the Solver will generate Long & Short signals at the same time when price is between support and resistance. This could be used to validate there is enough distance to take a trade Long toward resistance or Short toward support.

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Three conditions take place in the chart below. To the left a Long & Short is given indicating there is 30 ticks or more to the next support or resistance. In the middle, price breaks above the white pivot and give a Long indicating a clearance of 30 ticks or more to the next resistance pivot. To the right, price drops below the white pivot and the Short indicates there is 30 ticks or more to the lower support pivot.

Example 2B: Pivots and Tailwind

This demonstrates the Support Resistance solver using Woodies Pivots in Tailwind mode. When multiple support/resistance lines are used the Solver will generate Long signal when price is near support and has enough distance to above resistance. For a Short signal price has to be near resistance with enough distance to support below.

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

As you can see in the chart, Tailwind mode is more suited for detecting possible bounces off support/resistance lines.

Example 2C: Breaking Out

This is an extension of the previous two examples. This shows the use of Output > No Sup/Res(breakout) when price penetrates the last support or resistance line in both Headwind and Tailwind mode.

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

Tailwind mode

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

BloodHound v1

This section is specific to BloodHound v1. Scroll up for BloodHound v2.

Support Resistance Solver

The Support Resistance solver evaluates the proximity of price to a support/resistance line. This solver can evaluation support/resistance (S/R) in two opposing modes. Headwind or Tailwind. Headwind mode identifies if there is enough clearance/room to trade towards an S/R line. The closer price gets to S/R the more "headwind" it encounters, and thus it is less desirable to trade in that direction. Tailwind mode identifies if price is close or near enough to S/R for a possible bounce away from it. Bounce trades near S/R are more desirable, because a S/R line can act as a tailwind pushing price away.

Parameters

Display

Behavior

Options

Mode

Select the solver’s operational mode.

Headwind
This mode examines support and resistance in the context of a force working against your trade. i.e. If you are considering a long trade, and there is a s/r line above the current price, that s/r line typically acts as resistance(a headwind) against your trade. The closer price gets to that s/r line the less desirable it is to take that long trade. Headwind mode identifies if there is enough room/distance to trade into the nearest s/r line.
A long output is produced when price is far enough away from the nearest s/r line above price. A short output is produced when price is far enough away from the nearest s/r line below price. The desired clearance needed to trade into a s/r line is set by the Output » Minimum Distance and Ideal Distance settings.

Tailwind
This mode examines support and resistance in the context of a force working for a bounce trade away from s/r. i.e. If you are considering a long bounce trade off of a s/r line, that is underneath price, it is desirable for price to be a short distance away from the s/r line. Tailwind mode identifies when price is close enough to a s/r line to initiate a bounce trade.

A long output is produced when price is above the s/r line and within that close range. A short output is produced when price is below the s/r line and within that close range. The desired distance between price and the s/r line required to take a bounce trade is set by the Output » Ideal Distance and Maximum Distance settings.

Must Agree with Swing Trend

When True, this will filter the Tailwind mode output using the indicator Swing Trend » SwingDirection output. Long outputs will only occur when the Swing Trend indicator is showing an up trend. Short outputs will only occur when the Swing Trend indicator is showing a down trend.
Tip: To help visualize the filtering, the Swing Trend indicator should be added to the chart, and make sure the 'Display Style' property is not Off.

Use Channel

Use Indicator

Use Price Point Intervals

Input

Input Price

Distance Targets

Minimum Distance

Ideal Distance

Maximum Distance

Output

At Ideal Distance

At Min or Less

At Max or More

No Sup/Res (Breakout)

Video Tutorial

This video is from our weekly Workshop titled Revisiting the Support Resistance solver, on Oct 4th, 2013.
For more benefit please watch in full screen mode, as this video is recorded in HD.

Examples

Example 1A: The Basics of Headwind

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Note in these charts that the Long & Short Threshold in the Signals Properties are set to 0.99. A signal is given when price is 30 ticks or more away from support or resistance.

Example 1B: The Basics of Tailwind

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Ideal Distance to 2 Ticks
Set Maximum Distance to 10 Ticks
Set No Sup/Res to 0

The chart below shows a signal when price is within 2 ticks of the EMA 100.

Example 2A: Pivots and Headwind

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Example 2B: Pivots and Tailwind

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

As you can see in the chart, Tailwind mode is more suited for detecting possible bounces off support/resistance lines.

Example 2C: Breaking Out

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

Tailwind mode

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

Support Resistance Solver

Parameters

Display

Behavior

Options

Mode

Select the solver’s operational mode.

Must Agree with Swing Trend

Use Channel

Use Indicator

Use Price Point Intervals

Input

Input Price

Distance Targets

Minimum Distance

Ideal Distance

Maximum Distance

Output

At Ideal Distance

At Min or Less

At Max or More

No Sup/Res (Breakout)

Video Tutorial

This video is from our weekly Workshop titled Revisiting the Support Resistance solver, on Oct 4th, 2013.
For more benefit please watch in full screen mode, as this video is recorded in HD.

Examples

Example 1A: The Basics of Headwind

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Note in these charts that the Long & Short Threshold in the Signals Properties are set to 0.99. A signal is given when price is 30 ticks or more away from support or resistance.

Example 1B: The Basics of Tailwind

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to EMA 100
Set Ideal Distance to 2 Ticks
Set Maximum Distance to 10 Ticks
Set No Sup/Res to 0

The chart below shows a signal when price is within 2 ticks of the EMA 100.

Example 2A: Pivots and Headwind

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

Example 2B: Pivots and Tailwind

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set No Sup/Res to 0

As you can see in the chart, Tailwind mode is more suited for detecting possible bounces off support/resistance lines.

Example 2C: Breaking Out

Add the Support Resistance solver
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

Tailwind mode

Add the Support Resistance solver
Set Mode to Tailwind
Set Must Agree with Swing Trend to False
Set Use Indicator to True
Set Indicator to Woodies Pivots
Set Minimum Distance to 2 Ticks
Set Ideal Distance to 30 Ticks
Set At Ideal Distance to 0

General

BloodHound

BlackBird

Other Indicators

Support Resistance Solver

BloodHound v2

Properties tab

Properties tab

Output Modifiers