FTB-C000611 / Algorithm

Support/Resistance Clustering

Support/Resistance Clustering is a deterministic density clustering method that turns confirmed same-kind pivots into horizontal level candidates.

Also known aslevel clustering

Definitions

In plain terms

It groups nearby confirmed highs or lows while leaving isolated pivots as explicit noise.

Technical

The selected method runs one-dimensional DBSCAN separately by pivot kind in natural-log price space and reports median levels and observed bounds.

Scope

A cluster is descriptive evidence of repeated geometry, not a guaranteed future barrier.

Examples

  • A reviewer computes Support/Resistance Clustering on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • A cluster is descriptive evidence of repeated geometry, not a guaranteed future barrier.

Concept relationships

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D08-F01-A03 Primary
  • D08-F01-A04 Prerequisite

Evidence and governance

  1. A Density-Based Algorithm for Discovering Clusters in Large Spatial Databases with Noise Ester, Kriegel, Sander, Xu · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The original paper is not about financial support or resistance; that application is a package design.

  2. sklearn.cluster.DBSCAN scikit-learn · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package implements deterministic one-dimensional DBSCAN directly for Python/TypeScript parity.

  3. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  4. numpy.log NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A log transform requires positive finite prices and does not by itself define a financial level.

Reviewed by
fintech-builder-batch-011
Last reviewed
2026-08-09
Next review
2027-08-09
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.