Impedance Factor: Peaks and Valleys


There are two kinds of peaks that act as Impedance, the generic name I give to support and resistance as a factor to compare with the Thrust Factor of a pattern that launched a move. They are:
1. Primary Peaks/Valleys that are untouched valleys for support and peaks for resistance
2. Secondary Peaks/Valleys that have been TOTALLY eclipsed by a number of bars greater than the number of the lesser side of the Peak or Valley. This number is divided by 2.
Bars straddling any peak or valley are not counted.
Peaks and Valleys (primary and secondary) are measured by the lesser sides in both height and number of bars. The height is compared to the height of the pattern as measured by engulfed bars plus the height of the difference in that and the high or low of the trigger bar, and the number of bars is compared to the Thrust Factor. These are compared as ratios and given equal weight in determining a final comparison to see if it will stop a favorable move 89% of the way to it (or any % chosen) or act as a Stop Loss.
I will post links to illustrations soon. Please feel free to ask any questions. THANKS for any help on coding this and my other formula for Congestion Zones to complete the Impedance Factor!
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