Pattern formations enable traders to predict future significant points to buy and sell stocks. This might due to the scale-free nature of stock prices, also reflecting many phenomena in the nature. OZGENC indicator utilizes this to predict future potential support and resistance points. By choosing two local peak and throughs, the indicator estimates these potential points by calculating some kind of ratio between the two selected points. The indicator calculates these future points without using the accustomed Fibonacci ratio.
How to use:
The user should select two local points, through and peak, respectively. Local through is defined as A, and peak is defined as B in this case. The user should click on each of them twice, first for determining price (y-axis), second for time/date (x-axis). The indicator then calculates C and D points, C as the support and D as the resistance point. These points will be shown in the chart as horizontal lines in addition to their predicted values.