How To Compute Support and Resistance levels using Haskell?

@genevieve_boehm 

Support and resistance levels in trading are areas where the price of an asset tends to stop and reverse direction. These levels are important because they can be used to determine when to enter or exit a trade. In this article, we will discuss how to compute support and resistance levels using Haskell, a functional programming language.

To compute support and resistance levels using Haskell, we can use the following steps:

1. Input the historical price data: The first step is to input the historical price data of the asset you are analyzing. This data typically consists of the high, low, open, and close prices of the asset for a specific period of time, such as one month or one year.
2. Calculate the pivot point: The pivot point is a key level that serves as a reference point for calculating support and resistance levels. The pivot point is calculated as the average of the high, low, and close prices from the previous trading day. In Haskell, you can calculate the pivot point using the following code:

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pivotPoint :: Float -> Float -> Float -> Float
pivotPoint high low close = (high + low + close) / 3

1. Calculate support and resistance levels: Once you have calculated the pivot point, you can use it to calculate the support and resistance levels. The support levels are calculated as follows:

• First support level (S1) = (2 x pivot point) - high
• Second support level (S2) = pivot point - (high - low)
• Third support level (S3) = low - 2 x (high - pivot point)

Similarly, the resistance levels are calculated as follows:

• First resistance level (R1) = (2 x pivot point) - low
• Second resistance level (R2) = pivot point + (high - low)
• Third resistance level (R3) = high + 2 x (pivot point - low)

In Haskell, you can calculate the support and resistance levels using the following code:

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supportLevel :: Float -> Float -> Float -> Float -> Float
supportLevel pivot high low = (2 * pivot) - high

resistanceLevel :: Float -> Float -> Float -> Float -> Float
resistanceLevel pivot low high = (2 * pivot) - low

1. Print the support and resistance levels: Finally, you can print the calculated support and resistance levels to analyze the potential price movement of the asset. You can use the following code in Haskell to print the support and resistance levels:

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main = do
  let high = 10.0
      low = 8.0
      close = 9.0
      pivot = pivotPoint high low close
  putStrLn $ "Pivot Point: " ++ show pivot
  putStrLn $ "Support Level 1: " ++ show (supportLevel pivot high low)
  putStrLn $ "Support Level 2: " ++ show (supportLevel pivot high low)
  putStrLn $ "Support Level 3: " ++ show (supportLevel pivot high low)
  putStrLn $ "Resistance Level 1: " ++ show (resistanceLevel pivot low high)
  putStrLn $ "Resistance Level 2: " ++ show (resistanceLevel pivot low high)
  putStrLn $ "Resistance Level 3: " ++ show (resistanceLevel pivot low high)

By following these steps in Haskell, you can compute support and resistance levels for a given asset based on historical price data. These levels can help you make informed trading decisions and improve your trading strategies.