How To Compute Support and Resistance levels in MATLAB?

@mallory_cormier 

Support and resistance levels in trading are areas where the price tends to find support as it falls and resistance as it rises. These levels are important for traders to identify potential reversal points in the market. In MATLAB, you can compute support and resistance levels using historical price data. Here is a step-by-step guide on how to do this:

Step 1: Load historical price data First, you need to load historical price data into MATLAB. You can do this by importing a CSV file or using a MATLAB datafeed to retrieve real-time data. Make sure the data includes the date, open, high, low, and close prices for each day.

Step 2: Calculate pivot points Pivot points are key support and resistance levels that are used to identify potential reversal points in the market. To calculate pivot points in MATLAB, you can use the following formula: Pivot point (P) = (High + Low + Close) / 3

Step 3: Calculate support and resistance levels Once you have calculated the pivot point, you can compute support and resistance levels using the following formulas: Support 1 (S1) = (2 * P) - High Support 2 (S2) = P - (High - Low) Resistance 1 (R1) = (2 * P) - Low Resistance 2 (R2) = P + (High - Low)

Step 4: Plot the levels on a chart Finally, you can plot the support and resistance levels on a chart to visualize potential reversal points in the market. You can use the plot function in MATLAB to display these levels along with the historical price data.

By following these steps, you can compute support and resistance levels in MATLAB and use them as a key tool in your trading analysis.