Support and Resistance Levels

The Support and Resistance Levels indicator helps traders identify key price pivot areas on a chart by automatically plotting dynamic levels based on historical price action. It provides visual zones and automated line management to highlight significant market interest areas for potential reversals or breakouts.

Usage

The tool is designed to simplify the identification of market floors and ceilings. Traders can use the levels to determine entry or exit points, with the visual zones providing a "buffer" rather than a single price point, which accounts for market volatility.

Key usage scenarios include:

• Identifying Reversal Points: Significant levels often indicate where price might stall or reverse.
• Breakout Monitoring: High/Low zones help identify when the price is moving beyond historical ranges.
• Clean Charting: The indicator automatically removes levels after the price crosses them twice, ensuring only the most relevant, respected levels remain visible.

Details

The script utilizes pivot point calculations (highs and lows) over a defined lookback period to establish potential support and resistance. It evaluates the "strength" of these points by checking how many times price has interacted with a specific area.

• Pivot Logic: The indicator looks back over 284 bars to find significant pivots.
• Zone Calculation: Zones are dynamically scaled as a percentage of the price range over the last 300 bars, allowing the indicator to adapt to different volatility environments.
• Persistence: Lines can be extended across the chart to provide historical context for long-standing price levels.

Settings

• Enable Support & Resistance: Toggles the visibility of all calculated S/R levels.
• Support/Resistance Color: Customizable colors for lines and fills.
• S/R Strength: Controls sensitivity. Higher values require more price interactions to validate a level, resulting in fewer but more significant lines.
• Line Style & Width: Adjusts the visual appearance (Solid, Dotted, Dashed) and thickness.
• Enable Zones: Toggles the semi-transparent area around each level.
• Enable High/Low Zones: Specifically highlights the highest and lowest price points within the lookback period.
• Zone Width %: Adjusts the thickness of the zones relative to the recent price range.
• Expand S/R Lines: Extends the lines both forward and backward for a full-chart view.

FAQ

How do I use the S/R Strength setting?

The S/R Strength setting determines how many price touches are required to confirm a level. Increase this value to see only the most robust historical levels, or decrease it for a more sensitive view of local pivots.

Why do some lines disappear?

The indicator includes an automatic line removal feature. Once the price has crossed a specific support or resistance level twice, the line is considered "broken" and is removed to keep the chart clean.

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.