TQ's Support & Resistance

The TQ's Support & Resistance indicator provides a multi-layered framework for identifying and categorizing market structure levels based on dynamic momentum patterns. It allows traders to visualize the severity of supply and demand zones across five distinct levels of importance to build a systematic trading plan.

Usage

The Usage section focuses on interpreting the severity and trend of identified levels:

• Categorizing Severity: The indicator displays five different levels of support and resistance. Higher levels represent more significant structural points (higher severity), while lower levels represent shorter-term fluctuations.
• Trend Identification: Trend is determined by the price's relationship to these levels. A bullish trend is identified when the price closes above the current Supply Level (Higher High), while a bearish trend is identified when the price closes below the current Demand Level (Lower Low).
• Trade Execution: Traders can use high-severity levels for potential breakout targets or reversal zones. Lower-severity levels are often useful for trailing stop-loss placements or secondary targets.
• Trend Chart: The built-in Trend Chart provides a quick visual reference to verify the current trend across all five levels simultaneously without switching timeframes.

Details

This tool uses a proprietary momentum-based pattern to define support and resistance rather than standard volatility measures. Momentum is derived from transaction pressure: when the algorithm detects a shift from bearish to bullish conditions, a support level is formed at the lowest point of the preceding bearish phase. Conversely, a resistance level is marked at the highest point of a bullish phase once bearish momentum is detected.

The "Severity" concept is implemented through a hierarchical logic where momentum detected on higher tiers updates the supply or demand levels with distinct visual styling (increased line width and color coding). This hierarchy helps differentiate between minor price stalls and major structural shifts.

Settings

Smart Momentum

• BAR_INDEX: Sets a buffer of historical bars to allow the script to gather sufficient data for dynamic lookback calculations. Higher values (e.g., 5000) are recommended for lower timeframes like the 1m chart.
• Close or High & Low: Determines whether support and resistance levels are calculated using candle wicks (High/Low) or bodies (Close).

[S & R] Display Inputs (#1 - #5)

• High/Low Color: Customizes the colors for resistance and support lines.
• Line Length Left/Right: Controls the horizontal extension of the structural lines.
• lineWidth: Adjusts the thickness of the lines to visually distinguish between severity levels.
• Line Style: Options to display lines as Solid, Dotted, or Dashed.

Trend Chart

• Chart Position: Adjusts the location of the trend dashboard on the screen.
• Chart Size: Scales the dashboard size from Tiny to Huge.
• Chart [On/Off]: Toggles the visibility of the trend dashboard.

FAQ

How do I access the TQ's Support & Resistance indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between the 5 levels? The levels represent the "Severity" of the market structure. Level 1 identifies short-term momentum shifts, while Level 5 identifies major, long-term structural points.

Why are my lines not showing up correctly on a new chart? Ensure your "BAR_INDEX" setting is high enough. Lower timeframes require more historical data (up to 5000 bars) to initialize the dynamic calculations correctly.