Weekly Range Support & Resistance Levels

The Weekly Range Support & Resistance Levels indicator provides a statistical approach to identifying potential price floors and ceilings based on historical weekly price movement. It calculates the average trading range over a specific lookback period and projects these ranges from the current weekly opening price to create dynamic support and resistance zones.

Usage

The indicator is used to identify key levels where price is statistically likely to find support or resistance during the week. Traders can use these levels for:

• Target Setting: Using the projected resistance levels as profit targets for long positions.
• Mean Reversion: Identifying potential reversal points when price overextends toward the outer standard deviation bands.
• Trend Confirmation: Observing how price reacts to the weekly open line to determine the weekly directional bias.

The tool includes a visual dashboard (visible on the weekly timeframe) that provides historical hit rates, showing how often price has touched or closed beyond specific levels in the past.

Details

The script operates by analyzing the high and low distances from the weekly open over a default 30-week period.

• Baseline: It calculates the average percentage move above and below the weekly open.
• Volatility Adjustment: By incorporating a standard deviation multiplier, the indicator creates a "Range 2" (R2/S2) which represents a more extreme move compared to the standard "Range 1" (R1/S1).
• Implementation: The levels are recalculated at the start of every new week. On lower timeframes, the script projects these constant weekly values forward to assist intraday and swing traders in seeing the "big picture" levels.

Settings

General Settings

• Averaging Period: Sets the number of weeks used to calculate the average historical range (Default is 30).
• StDev Multiplier: Adjusts the width of the secondary support and resistance zones based on standard deviation.
• Show Support / Resistance Prices: Toggles the price labels on the right side of the chart.

Visuals

• Support/Resistance Color: Customizes the colors for the bullish and bearish zones.
• Fill: Toggles the background shading between the R1/R2 and S1/S2 levels.
• Show Weekly Open Line: Displays a horizontal line at the start of the current week's opening price.
• Line Styles: Allows customization of the line types (Solid, Dashed, Dotted) for each individual level.
• Show Previous Levels: When enabled, historical weekly levels remain on the chart instead of being cleared.

Statistics Table

• Show Stats on Weekly Chart: Enables a table that displays the historical frequency of level touches and closes.
• Position/Color: Controls the location (Top, Middle, Bottom) and background color of the stats table.

FAQ

How do I interpret the "Touch" vs "Close" statistics in the table? The "Touch" stat indicates how often price reached the level at any point during the week, while the "Close" stat indicates how often the weekly candle actually settled beyond that level.

Why does the indicator show a runtime error on very low timeframes? To ensure calculation accuracy and prevent chart clutter, the script requires a minimum timeframe (e.g., 3-minute for stocks, 30-minute for Forex/Crypto) to process the weekly data correctly.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.