Knowledge center · Technical analysis
Support & resistance (40d swings)
The lowest low and highest high of the last 40 sessions — the range’s floor and ceiling.
Formula
Support = 40-day minimum low; resistance = 40-day maximum high.
Interpretation
Distance to each level frames the near-term risk/reward: little room below support means stops are cheap; little room to resistance means the easy part of the move is done.
What good looks like
Price just above well-tested support with several percent of room to resistance.
What bad looks like
Price pressed against resistance with support far below.
Typical range
Ticker-specific price levels.
Limitations
Swing extremes are one definition of many; breakouts routinely pierce these levels before reversing (false breaks).
How OmniSignal uses it
Objective, reproducible levels — no chart-reading subjectivity, anyone can verify them.
Where it enters the score
Not a scoring input.
References
Edwards & Magee, Technical Analysis of Stock Trends
Related concepts