I'm a big fan of support buying and i have a number of rules associated with this sort of trade.
I am no whiz at creating amibroker codes or anything like that so i havent backtested this theory to the best of my ability.
What i would like to know, as i think it would be of great benifit, is;
What sort of expectancy would a sp have of rallying off support into a breakout, relative to the amount of times that support line is honoured.
From my way of thinking, a sp should be honoured off a particular price with high volume, meaning there are a lot of buyers or somebody with a lot of money buying at this point. But at some stage, surely if the price keeps getting sent back down from resistance, there will be an exhaustion on one side. Either, we will run out of buyers, or run out of sellers, hence a breakout.
How many times can a price be supported to give us the greatest expectancy of an upside break? Is it when the price is supported 3 times? or 10 times?
Because of my newbiness with amibroker, i havent been able to examine these sort of results over as many stocks and time periods as i would of liked.
Has anybody else done this? or does anyone know how to write a script for it?