Retest Support Resistance Signals

The Retest Support Resistance Signals indicator identifies key support and resistance levels and highlights price action retests of these structures on the chart. This tool combines pivot point detection with price action analysis to help traders visualize market structure confirmation through specific retest labels.

Usage

The indicator can be used to identify potential entry points or trend confirmations based on how price reacts to established levels. When a support or resistance level is broken and then subsequently tested—forming a wick beyond the level followed by a bounce back—the indicator marks the bar with an "R" label.

Traders can use this tool to:

• Identify trend strength: Frequent successful retests can indicate a robust level or trend.
• Filter signals: Use the breakout threshold to focus only on significant price levels that haven't been breached multiple times.
• Customize analysis: Switch between "wick" or "body" detection to match specific trading styles or asset volatility.

Details

The script functions by monitoring price pivots and tracking whether those levels are maintained, broken, or retested. A unique aspect of this tool is its flexibility regarding market philosophy; it accommodates the idea that levels can become either stronger or weaker the more they are tested. The "Retest Weaker" toggle allows the user to decide how the indicator visually treats these interactions. Additionally, the tool manages chart clutter by offering several ways to handle old levels, such as freezing them in place or removing them after a certain number of bars or breakouts.

Settings

Main Settings

• Detection Method: Choose whether to detect levels based on bar wicks or bar bodies.
• Left/Right Bars: Sets the number of bars required on either side to confirm a pivot point.
• Retest Weaker: Toggles the logic between retests making a level weaker (bearish implication for support) versus stronger (bullish implication for support).

Deletion Settings

• Delete Definition: Controls what happens to a level once it meets deletion criteria (Stop Updating, Completely Delete, or Change Color).
• Breakouts Until Level Deletes: The number of times price must cross a level before it is considered invalidated.
• Bars Until Level Deletes: The maximum lifespan of a level on the chart in bars.

Cosmetic Settings

• Support/Resistance Colors: Customizable colors for the initial retest indications.
• Change Color Method: Choose if levels change color based on price position or fade out over time.
• Line Width: Adjusts the visual thickness of the support and resistance lines.

FAQ

How do I interpret the "R" label?

The "R" label indicates a retest. It appears when the price returns to a previously established support or resistance level and shows signs of rejection (a bounce), confirming the level's significance.

Why do some levels disappear from my chart?

Levels are managed by the "Deletion Settings." They may disappear or stop updating if they exceed the maximum number of breakouts or the maximum bar age set in the indicator inputs.

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.