Automatic Support and Resistance

Automatic Support and Resistance
Copied from Frankfurt stocks and commodities magazine. This is in relation to an article on page 51 of the May 1998 issue.
In my article "Automatic support and resistance" in this matter, I present a computerized approach to finding support and resistance levels on the table. To recreate the indicators and the system described in my article using MetaStock for Windows, enter the following formula:
Indicators:
S1: if (Ref (Low, -4) = LLV (Low, 9), Ref (Low, -4), PREVIOUS)
S2: if (Fml ("S1") = Ref (Fml ("S1"), -1), previous, Ref (Fml ("S1"), -1))
S3: if (Fml ("S1") = Ref (Fml ("S1"), -1), previous, Ref (Fml ("S2"), -1))
S4: if (Fml ("S1") = Ref (Fml ("S1"), -1), previous, Ref (Fml ("S3"), -1))
S5: if (Fml ("S1") = Ref (Fml ("S1"), -1), previous, Ref (Fml ("S4"), -1))
S6: if (Fml ("S1") = Ref (Fml ("S1"), -1), previous, Ref (Fml ("S5"), -1))
WSO: 100 * (1 ¬ (int (Fml ("S1") / closing) + Int (Fml ("S2") / closing) + Int (Fml ("S3") / close) + Int (Fml ("S4 ") / close) + Int (Fml (" S5 ") / closing) + Int (Fml (" S6 ") / close)) / 6)
R1: if (Ref (High, -4) = HHV (High, 9), Ref (High, -4), PREVIOUS)
R2: if (Fml ("R1") = Ref (Fml ("R1"), -1), previous, Ref (Fml ("R1"), -1))
R3: if (Fml ("R1") = Ref (Fml ("R1"), -1), previous, Ref (Fml ("R2"), -1))
R4: if (Fml ("R1") = Ref (Fml ("R1"), -1), previous, Ref (Fml ("R3"), -1))
R5: if (Fml ("R1") = Ref (Fml ("R1"), -1), previous, Ref (Fml ("R4"), -1))
R6: if (Fml ("R1") = Ref (Fml ("R1"), -1), previous, Ref (Fml ("R5"), -1))
WRO: 100 * (1 ¬ (int (Fml ("R1") / closing) + Int (Fml ("R2") / close) + Int (Fml ("R3") / close) + Int (Fml ("R4 ") / close) + Int (Fml (" R5 ") / closing) + Int (Fml (" R6 ") / close)) / 6)
The indicators S1 through S6 and R1 through R6 should be plotted as points, not as a continuous line.
Trading system formulas and parameters: Enter long positions on either building support or sustained uptrend and exit position using stops. Sun short positions.
Enter Long: Fml ("WSO")> Mov (Fml ("WSO"), 4) and Mov (Fml ("WRO"), 30 C)> 95
Stop Out:
Breakeven stop: the ground floor of 2%
Trailing stop: Profit risk of 10 percent, ignoring 10 periods
Maximum loss stop: Maximum loss of 7%
Other conditions:
Initial capital = 1000, long positions only, Trade price = close, trading delay = 0, Entry commission = 0%, Output = 0% Commission, Interest rate = 5% margin requirements. 100%