Thom Hartle’s article "Cueing Off Support and Resistance Levels" can
be implemented in the NeuroShell Trader by combining a few of the over 800 technical
indicators and a couple that we’ve designed to specifically attack this problem.
In the Trading Strategy Wizard you need to structure your entry conditions
based on the values and slope of the difference between the MACD and the MACD
Signal. Additionally we recommend placing a buy stop at the previous weeks high
or low based on the position entry type. You may want to add additional leeway
to the stop order, or better yet – let the Genetic Algorithm select the best
leeway by using the Professional versions of the NeuroShell Trader.
To Enter a Long position, select the following entry conditions:
With a stop price of WeekHigh(Date,High,1)
To Enter a Short position, select the following entry conditions:
With a stop price of WeekLow(Date,Low,1)
Figure 1: Long Entry Conditions and Stop Price for a Long Entry.
File Download