The MAutoFloorCeiling indicator is the culmination of over 2 years of research to determine Support / Resistance levels automatically. The heart of it utilizes a powerful algorithm based on Wyckoffian concepts of waves, volume, and price levels. This indicator gives great insight as to ideal places to enter trade positions. The goal is to make great trades with a high degree of confidence.
Uses for MAutoFloorCeiling
1. Find tops and bottoms.
2. Find support and resistance levels
3. Find break out / break down areas
4. Find pullbacks
AND IT DOES ALL THIS WITHOUT CONFIRMATION (unlike regular trend lines)
|Oftentimes market tops and bottoms are formed with climactic buying or selling volume. This is normally difficult to detect. However, MAutoFloorCeiling is able to detect most market tops and bottoms|
1. There are 2 types of lines: floors and ceilings
2. A floor line is drawn when there is a selling volume bias (heavy selling) and the market is going down.
More floor lines get drawn if market continues to go lower combined with a selling volume bias.
3. A ceiling line is drawn when there is a buying volume bias (heavy buying) and the market is going up.
More ceiling lines get drawn if market continues to go higher combined with a buying volume bias.
4. There is a 1 bar delay when drawing a floor / ceiling line. After the current bar closes,
it takes 1 additional bar to close in order to confirm the line and draw it.
You can ask yourself when a line is drawn, a checklist of questions.
Is it a top / bottom?
Is it support / resistance?
Is it a breakout / breakdown?
Is it a pullback?
|Try to answer these questions in relation to the waves / boxes on the chart and wyckoff concepts. If you cannot answer the questions, better to wait for more confirmation before entering a trade.|
Examples & Patterns
Double Ceiling / Double Floor often serve as reversal points in the market. In this example the upper two ceilings are drawn very closely together and we have a shortening of the thrust along with an upthrust. At the top two ceiling lines we have a buying volume bias which failed to capitalize. Price falls and bounces off first ceiling. After the strong down bar with 144 wave volume on the right, its a no brainer to short.
Lower Ceiling / Higher Floor shows that the direction the market is moving in is slowing down, and likely to reverse. In this example we have 2 things going on, first the double floor on the left, and the the lower ceiling on the right. The double floor served as a reversal point. There was a selling volume occuring twice which supply failed to capitalize on so afterwards market reversed. The lower ceiling is a really great pattern. The fact that there is a higher high behind it which did not draw a ceiling points to the fact that at that higher price level the market failed to attract more buying volume and that there was no buying bias. The lower ceiling shows a buying bias at that level, but we just went down right away after. Its a case of effort / reward. Effort was put in, but didn't do anything. Greate place to short after the 151 down wave on the right with the very bearish down bar.
Pullback. This is a pullback entry into a downtrend. The MAutoFloorCeiling often draws great entry points where the lines become support / resistance. On the right part of the chart we can see a channel was formed that acted as support and resistance. On the total right we are banging on the low and a double floor is formed. Further right we dont see in this image, but we see heavy volume come in with the 918 upwave volume. In this case it became effort / result as the price hit the double floor which acted as a double resistance, and then we continued to go down.
|These are more examples of what the lines look like, which are being drawn automatically. Study them and the trading opportunities will unfold.|