The indicator uses the construction method described by Vladislav Antonov
(for those who read his session reviews on Viac or Alpari). Here is a small
excerpt from his method:
No need to explain the meaning of resistance and support. There are many
methods to determine price levels, but I use my calculations. Dynamic levels
of support/resistance are defined using MA lines, and statistic lines are
calculated using the higher timeframe.
To calculate intraday levels for one hour, use High, Low and Close of the
previous hour candlestick.
To calculate intraday levels for one day, use High, Low and Close of the
previous one day candlestick.
To calculate intraday levels for one week, use High, Low and Close of the
previous one week candlestick.
In this review I calculate support and resistance levels using the daily
candlestick of the previous day. Thus, the price levels will be valid for the
entire day, and the next day they should be recalculated. Example. For
example, take daily candle 02.11.06: High = 1.2786 Low = 1.2736 Close =
1.2780. We get the levels for the current day, and use them on all charts
smaller than the daily timeframe. The next day, new levels are calculated.
There are 3 methods of calculation, depending on the size of the previous
Reduced - support and resistance levels for the weak market. If the market
has closed with a large candlestick of more than 200 points, it is better to use
this calculation as a correction is expected and the market will be weak;
Normal - support and resistance levels for the medium volatility of the
market. Day candlesticks from 100 to 200 points. Normal works well during
the formation of a steady growth or decline, and candlesticks are of a similar
Extended - support and resistance levels for a strong market. When the
market gets into a triangle and becomes weak, we expect that there will be a
strong move, and use the levels with the extended price range.
To decide which method of calculation to use, you should do your own
research and gather the statistics of the levels. As to me, I don't keep up with
the items described above (this is averagely for the pound). So far, I choose
methods guided by my intuition and by the expected price pattern