Support/Resistance Breakout Detector

The Support/Resistance Breakout Detector indicator automatically identifies and visualizes dynamic price levels using pivot points while monitoring for high-volume breakouts. This tool helps traders identify significant market structures and potential trend continuations or reversals through automated level detection and volume-filtered signals.

Usage

The tool plots red resistance lines and green support lines based on recent price action. These lines extend forward until the price interacts with them, at which point they terminate. This creates a clean chart that only displays relevant, "unbroken" levels.

Traders can use this indicator to:

• Identify Support and Resistance: Automatically map out key supply and demand zones without manual drawing.
• Confirm Breakouts: Use the "B" (Breakout) labels to identify when price closes beyond a level with significant volume.
• Spot Rejection Wicks: Labels like "Bull Wick" or "Bear Wick" appear when the price briefly breaches a level but recovers, suggesting a potential fakeout or liquidity grab.
• Volume Filtering: Ensure that breakouts are backed by market interest by setting a minimum volume threshold.

Details

The script utilizes ta.pivothigh() and ta.pivotlow() functions to find structural peaks and valleys. When a pivot is confirmed, a line is projected forward. A loop checks subsequent candles to determine if the price has touched or crossed the level; if it has, the line length is truncated to that specific bar index.

Breakouts are calculated by comparing the current closing price to the most recent active support or resistance level. A signal is only triggered if the volume exceeds the user-defined minVolume parameter, helping to filter out low-conviction price movements.

Settings

• Pivot Lookback: Determines the number of bars required to confirm a pivot high or low. Higher values result in more significant, longer-term levels.
• Show Breakout Labels: Toggles the visibility of "B", "Bull Wick", and "Bear Wick" labels on the chart.
• Min Volume for Breakout: Sets the volume threshold required to trigger a breakout signal and alert.
• Max Extend Length: Defines the maximum number of bars a support or resistance line can extend if not touched by price.

FAQ

How do I use the breakout labels effectively?

Breakout labels (B) indicate a candle has closed above resistance or below support with high volume. "Bull Wick" and "Bear Wick" labels indicate price rejected a level, which can be useful for identifying stop hunts or reversals.

Can I set alerts for these levels?

Yes, the indicator includes built-in alert conditions for both resistance and support breakouts. You can configure these to notify you when the volume-filtered criteria are met.

How do I access Support/Resistance Breakout Detector?

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