Next Support and Resistance

The Next Support and Resistance indicator identifies and visualizes dynamic support and resistance levels derived from historical pivot points, displaying only the levels most relevant to the current price action.

Usage

The Usage section describes how the script can be used. Traders can use this tool to identify potential reversal zones or breakout levels without cluttering the chart with every historical pivot. By focusing on the "next" levels—specifically the closest historical pivot high above the current price and the closest historical pivot low below the current price—the indicator provides a streamlined view of market structure.

Examples of usage include:

• Trend Following: Identifying the next resistance level as a potential take-profit target in an uptrend.
• Reversal Trading: Monitoring price action near the projected support or resistance for signs of exhaustion or rejection.
• Breakout Confirmation: Using the levels as triggers for entry when price closes decisively above resistance or below support.

Details

The script operates by scanning historical data for pivot points defined by the user-specified length. A pivot high is identified if a high is greater than all highs within the specified length on both sides, and vice versa for pivot lows.

The implementation logic continuously tracks these pivot levels and calculates the proximity of the current price (using the HL2 average) to all discovered levels. It then selects and plots only the resistance level immediately above and the support level immediately below the current price. This creates a "ladder" effect where levels update dynamically as price moves through different zones of historical importance.

Settings

The indicator includes the following settings:

• Pivot Length: Determines the sensitivity of the pivot point detection. A higher value identifies more significant, long-term structural levels, while a lower value captures more frequent, short-term price fluctuations.

FAQ

How do I interpret the lines on the chart?

The red line represents the nearest historical resistance level above the current price, while the green line represents the nearest historical support level below the current price.

Why do the lines disappear or jump?

The lines are designed to show only the "next" relevant levels. If the price crosses a level or if a new, closer pivot point is established, the indicator will jump to show the updated nearest boundary.

How can I access the Next Support and Resistance indicator?

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