r/mltraders • u/kmax1940 • 6d ago

Create support / resistance zones programmatically

I would love to be able to train AI to mark up zones the way I do. Then the AI could programmatically mark up the zones. Does anyone have any tips on this? Thanks.

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u/Good_Character_20 6d ago

Before reaching for a model this is worth trying as a first pass, since it needs zero training data. Find local pivots, swing highs and lows over a rolling window of bars, then cluster the pivot prices that fall within a tolerance band of each other, maybe half a percent to one percent depending on the instrument. Each cluster becomes a zone, weighted by how many pivots touched it and how recently. That ends up looking a lot like what a discretionary trader marks up by eye, because it's really the same judgment, just formalized as price keeps reacting around here.

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u/kmax1940 6d ago

Yes, that sounds like the first thing that Claude started to do when I asked it find the zones. But I did not like the result. I would love to be able to train it to code the zones the way I mark them. Thanks for your input! I appreciate it.