Feature Summary
The idea of the feature is to continuously compare the price of available crypto tokens to their support and resistance levels (SaRL). Once the algorithm detects that a the price broke through support or resistance it generates an alert and distributes it.
Feature Details
Detection
Step 1: SaRL Calculation
Since the available SaRL available through the Finnhub api aren’t reliable, we will calculate them on our own. Therefore, we can utilize the existing SaRL calculation based on pivot points.
- Calculation will be performed daily for all available tokens
- SaRL will be calaculated for 15M, 1H, and D timeframe
- We will use a standard look back period of 24 candles for the calculation
The results will be stored in a new table [support_and_resistance]
Step 2: Detection
We will set up a new Python script that checks the current price against current SaRL. The script will be called by the signal detection script.
Distribution
In case the script detects a the break of a support or resistance level for a token, the following process gets initiated:
Step 1: Create an entry in database
We will set up a new database table [support_and_resistance_alerts]. Once we detect an alert an new entry is added to this table. However, the primary key of the table will contain symbol, date, support, resistance. Thereby, it is ensured that there’s only one alert per day for each support and resistance.
Step 2: Create a timeline post
We will generate a timeline post using the “Information/Price Alert” post type.
Visualization
We will build a new UI, similar to the Signal feature where the user can filter and search for alerts.
Outlook (V2)
Additional features that can be realized:
- Automated push Notification alerts for mobile users
- Automated email alerts for web users
Open Items
Does it make sense to have kind of threshold that alerts when the price gets close to a resistance? If so how to handle it?
Open Items Development
Integration in Signal Routine
UI
Timeline Integration