i've recenty visited the " identifying support and resistance blog" , which is mostly focused on identifying trendlines , but doesn't explore the horizontal support and resistance .where can i learn more about identifying the horizontal support and resistance using python?
Hey Mphahlela,
In order to plot the horizontal support and resistance levels on price charts, you can start off by:
- Identifying the swing high and swing lows. (This can be done by identifying the local minima and maxima points)
- Identifying the price level (horizontal) at which the most number of such swings highs/ lows appear.
- Plotting these lines to visualise the horizontal support or resistance levels.
- How to Detect Support & Resistance Levels and Breakout using Python
- Detection of price support and resistance levels in Python
These informative articles will help you in understanding the implementation behind the same in detail.
I hope this was helpful.
how do you further incoporate the candlestick pattern recognition by Ta-lib with the discussed methods of identifying key levels to detect price turnuing points on this key levels?
Hi Mphalela,
You might be aware that Ta-lib has some built-in functions that can be used for candlestick pattern recognition. Here's the link to the documentation for the same.
It would indeed be a very good idea to incorporate both - the candlestick patterns, as well as the support and resistance levels, to ensure multiple technical confirmations before you consider taking any positions.
Here's an article that explains how we can combine and use both - candlestick patterns along with any existing indicator.
We can implement the same logic to combine candlestick pattern recognition with various indicators, including the support and resistance levels.
Hope this helps.