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How far are the close prices from the support line
The current rule detects support line patterns. It uses the advanced rules syntax to detect bars where a support line with specific characteristics occurs.
The support line here is defined as a line (which is most of the time non-horizontal) that connects two bars and where the close prices between these two bars are always above the support line.
The characteristics are:
- Support line that occurs in a timeframe of 30 to 80 bars. You can change these values later.
- How far are the close prices from the support line. This can be defined in the value that multiplies the close price. It is currently set to 0.99 (close * 0.99).
A value of one means that the close prices must be above the support line. A value lower than one means that the time-series that results from the multiplication of the close prices and the previous value must be above the support line.
The lower the value is, the higher the distance is between the close prices and the support line.
Note that the first three and the last three bars of the support line are not counted.
To get a clear picture of how this rule works, plot it on a chart. Plot it on the same pane where a candlestick chart is drawn, so that you can get arrows instead of lines or bars.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.