Vortex indicator cross support&resistance

The Vortex indicator cross support&resistance tool identifies significant price levels based on technical crossovers of the Vortex Indicator. By marking support and resistance levels at the point of trend shifts, it provides traders with visual price targets and areas of potential interest.

Usage

The script is designed to highlight horizontal levels derived from the Vortex Indicator (VI) interactions. When the positive trend component (VI+) crosses above the negative component (VI-), a crossover level is plotted at the high of the candle, signaling a resistance or potential breakout point. Conversely, when VI+ crosses below VI-, a crossunder level is plotted at the low of the candle, marking a support zone.

Traders can use these levels to:

• Identify historical support and resistance zones based on trend momentum.
• Set price targets or stop-loss levels near these dynamically generated lines.
• Monitor price action as it interacts with the extended lines to gauge trend continuation or reversal.

Details

The Vortex Indicator is a momentum-based oscillator used to identify the start of a new trend or the continuation of an existing one. It calculates the positive and negative trend movements relative to the True Range. In this implementation, the Vortex components are smoothed using a Triple Exponential Moving Average (TEMA) to filter out noise and provide more stable crossover signals.

When a crossover event occurs, the script captures the specific price (High or Low) and projects a horizontal line. These lines can be configured to persist or extend until the price intersects with them, depending on the user's settings.

Settings

General Setting

• Length: The lookback period used for the Vortex Indicator calculations.
• Show labels: Toggles the visibility of price labels next to the horizontal levels.

Line Setting

• Line count: Determines the maximum number of support/resistance lines displayed on the chart simultaneously.
• Extend lines: If enabled, the lines will extend indefinitely; otherwise, they may terminate based on price interaction.
• Line thickness: Controls the visual weight of the plotted lines.
• Line style: Allows selection between solid, dotted, or dashed line appearances.
• Crossover color: The color assigned to resistance levels generated by bullish crossovers.
• Bottom color: The color assigned to support levels generated by bearish crossunders.

FAQ

How can I access the Vortex indicator cross support&resistance?

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

What is the advantage of using TEMA smoothing in this indicator?

The TEMA smoothing helps reduce the "sawtooth" effect of the standard Vortex Indicator, leading to fewer false signals and more reliable support/resistance levels.

Can I use this for intraday trading?

Yes, the indicator scales with the chart timeframe, allowing you to identify short-term levels on lower timeframes or major structural levels on daily/weekly charts.