## Support Resistance Solver

The Support Resistance solver evaluates the proximity of price to a support/resistance line. Headwind mode produces a Long output value when price is below resistance and the ideal distance away. A Short output value is produced when price is above support and the ideal distance away. Tailwind mode produces a Long output value when price is above support and within the ideal distance. A Short output value is produced when price is below resistance and the ideal distance away.

### Parameters

#### Options

#### Input

#### Distance Targets

#### Output

### 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

#### 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