Dynamic Resistance and Support by A3T - DRS System
Concept : The script Calculates supply-demand areas based on price and change in volume w.r.t change in price (momentum). The EMA slope is read to identify the trend and signals are generated based on the relative strength of all 3 component i.e price, change in price-volume ratio and trend. BLUE channel is formed based on Relative strength of price(RSI) and RED channel is formed based on change in price-volume ratio strength.(Calculating for x price movement what is the volume used based on averaging concept)
Trade setup:
-For BUY signal allow candles to form a proper channel. Once the channel is stable let the price to above the channel and retest the channel. The trade entry will be once the high of retraced candles and last BUY signal candle high breaks. SL will be 1m candle close below the channel.
- For SELL signal allow candles to form a proper channel. Once the channel is stable(Straight line) let the price to go below the channel and retest the channel. The trade entry will be once the low of retraced candles and last SELL signal candle low breaks. SL will be 1m candle close above the channel.
- For Breakout trade there should be a high volume candle RED/GREEN (Dark FILL) inside the channel to execute the trade.
Note: If the breakout is with white filled candle then avoid that trade. Works only on high liquid counters with moderate volatility.
Also check Green and Red line which is S1 and R1 of pivot points.
Major benefits o DRS system:
- Automatic – no more guessing, or subjective line drawing
- Calculates supply demand areas based on price and change in volume w.r.t price change (momentum)
- Multiple time frames & fully customization - measured automatically
- 1/5m time frame is best for intraday trading. Will find 2-3 breakouts per day.
- Buy/Sell signals are majorly found during trending day only.
- Inbuilt Buy and Sell signal ( Trading rule apply)
- SL based on channel end.
-Trailing SL also can be opted with blue 44-ema line
- No signals are generated on low liquid counters with high/low volatility (price change > 0.2% and < 2% and avg. volume >20K/candle )
Example Chart Above : All sample chart above shows the DRS trading system applied on Banknifty(NSE)
릴리즈 노트:
Many more Buy/Sell signals are added
1- Trend reversal TR_B/TR_S
2- Breakout trade B_*/S_*
3-Channel formation B_C/S_C
Also all buy and sell alerts are separated and added channel formation alert
1- Trend reversal TR_B/TR_S
2- Breakout trade B_*/S_*
3-Channel formation B_C/S_C
Also all buy and sell alerts are separated and added channel formation alert
릴리즈 노트:
Updated with ATR based BUY/SELL signal with trailing SL lines.
1- Once BUY signal generated and below the candle is green square then it is perfect long entry with target as RED line price or any of the channel bottom price. (if RED line is close then use trailing SL GREEN line crossing the price as target) SL will be always the GREEN line price.
2- Once SELL signal generated and below the candle is red square then it is perfect short entry with target as GREEN line price or any of the channel top price. (if GREEN line is close then use trailing SL RED line crossing the price as target) SL will be always the RED line price.
NOTE - DO not enter if below the candle square color is opposite.
1- Once BUY signal generated and below the candle is green square then it is perfect long entry with target as RED line price or any of the channel bottom price. (if RED line is close then use trailing SL GREEN line crossing the price as target) SL will be always the GREEN line price.
2- Once SELL signal generated and below the candle is red square then it is perfect short entry with target as GREEN line price or any of the channel top price. (if GREEN line is close then use trailing SL RED line crossing the price as target) SL will be always the RED line price.
NOTE - DO not enter if below the candle square color is opposite.
릴리즈 노트:
Removed Buy/Sell signal and updated more accurate signals in Paid version of this