How FINVERCO estimates support and resistance
A transparent price-range heuristic, with limitations that matter when the market gaps.
The implementation is a range estimator
The current calculation requires at least 30 historical bars and uses the most recent 60 when available. It sorts lows from lowest to highest and highs from highest to lowest. It selects positions floor(n × 0.18) and floor(n × 0.05), then rounds the resulting levels.
With 60 bars, these zero-based positions are 10 and 3: the eleventh and fourth observations in the sorted lists. The labels are generated from recent price distributions. They are not confirmed order-book liquidity or an analyst’s manually selected chart levels.
Why the side of the current price matters
The calculation does not enforce that every support is below the latest price or every resistance above it. After a gap or a major repricing, a historical “support” can sit above the market. That makes it a reference to the old range, not a floor under today’s price.
Before using a level, compare it with the current quote and inspect the chart. If it is on the unexpected side, revisit the label and the market structure. Do not force the chart to fit the generated name.
A touch is not a guarantee
A historical cluster can help define a research question: does price respond here, and does that response persist? A single touch or intraday spike does not establish support. Earnings, financing or a market-wide shock can move price through several historical levels at once.
Corporate actions, incomplete bars and provider adjustments can also affect the historical range. Keep the data source, price scale and window consistent when comparing levels over time.
Turn a reference into a falsifiable plan
Write down what would count as a meaningful response before looking at the next bar. For example, define whether your observation concerns an intraday test or a completed session, and whether activity confirms the move. FINVERCO does not determine that rule for you.
- Check where each level sits relative to current price.
- Inspect the underlying 30–60-bar window.
- Separate a historical reference from a guaranteed barrier.
- Reassess levels after a gap or material company event.
Sources and evidence
The editorial policy explains AI assistance and the limits of these studies.
Continue your research
Relative volume: activity is not direction
The exact FINVERCO denominator, a worked example and the intraday comparison trap.
Bull, base and bear: what the current scenarios can tell you
The fixed multipliers behind the labels and how to build a better research hypothesis.