How support and resistance levels are found

Support and resistance levels on Flash Finance are computed, not drawn by hand, so the same rules apply to every stock:

1. Find swings. Every confirmed swing high and swing low of the last year (about 250 sessions) is a candidate: a high that is the highest of the five bars on each side, or a low that is the lowest.
2. Cluster them. Candidates within max(1.2% of the current price, 0.6 × ATR) of each other are merged into one level. The level's price is the median of its members.
3. Score them. A level's strength is the number of swings it absorbed (its "touches"). A level touched once is still reported, because a lone swing high is where sellers last won, but multi-touch levels are the ones most traders watch.
4. Split by side. Levels more than 0.2% below the close are supports and those more than 0.2% above are resistances. The nearest four of each are shown.

Because the tolerance scales with volatility (ATR), a volatile small cap gets wider zones than a quiet large cap. Treat each level as a zone about one ATR wide, not an exact price.