Smart Support / Resistance Zones PRO

The Smart Support / Resistance Zones PRO indicator identifies and visualizes dynamic market reaction zones using validated pivot structures and volatility-based sizing. It provides traders with a real-time heatmap of supply and demand areas that evolve based on price action retests and structural breaks.

Usage

The Usage section describes how the script can be used to identify key market levels and manage trades. The indicator automatically plots boxes representing support and resistance zones, which can be used for entries, stop-loss placement, and take-profit targets.

• Zone Validation: A zone is initially created from a pivot point but requires a price retest to increase its strength score. Traders can use the "Strength Percentage" to prioritize institutional levels over minor price fluctuations.
• Trend Transitions: Users can monitor "S/R Flips," where a broken support zone automatically transforms into a resistance zone (and vice versa), signaling a shift in market structure.
• Cleaning the Chart: By adjusting the "Minimum Retests to Show" setting, traders can filter out unconfirmed "candidate" zones, leaving only highly respected historical levels visible.
• Volatility Adaptation: Because the zone width is determined by ATR, the tool automatically widens during high-volatility sessions (like NY open) and tightens during consolidation, providing more accurate touch-points.

Details

The script utilizes a sophisticated logic for zone construction and maintenance:

• Dynamic Merging: To prevent chart clutter, the script checks if new pivots are close to existing zones (based on a "Merge distance ATR multiplier"). If they are, the indicator merges the levels into a single expanded zone.
• Confirmed Retest Logic: The indicator requires a "departure" phase where price must move a certain distance away from the zone before a return touch is counted as a valid retest. This prevents multiple bars in a single consolidation from artificially inflating the zone's strength.
• Invalidation: Zones are removed or "frozen" once a breakout occurs. Users can toggle between "Close" (requires a candle body break) or "Wick" (any price penetration) for invalidation.
• Visual Heatmap: Transparency is mapped to the retest count. Stronger zones (more retests) appear more opaque and bold, while weaker, unconfirmed zones appear faded.

Settings

General Settings

• Pivot length: The number of bars required to confirm a high or low pivot.
• ATR length: The lookback period used to calculate volatility for zone sizing.
• Zone width ATR multiplier: Adjusts how thick the support and resistance boxes are.
• Merge distance ATR multiplier: Controls the proximity at which two nearby zones will combine into one.
• Bars between counted retests: The minimum time buffer required between touches for them to count as unique retests.
• Max zones per side: Limits the total number of support or resistance boxes stored in memory.

Visibility & Validation

• Show unconfirmed candidate zones: When enabled, displays zones that have not yet been retested.
• Minimum retests to show zone: Filters the display based on a minimum required strength.
• Retests needed for 100%: Sets the threshold for a zone to reach maximum visual opacity and strength rating.
• Required price departure before retest: The distance price must travel away from a zone before a new touch is validated.

Visuals & Behavior

• Zone break confirmation: Choose between "Close" or "Wick" to determine when a zone is considered broken.
• Enable S/R flip after breakout: When enabled, broken support becomes resistance and vice versa.
• Strong/Weak zone transparency: Adjusts the heatmap intensity for different zone strengths.
• Show strength %: Toggles the numerical percentage text on the right side of the boxes.

FAQ

How do I interpret the percentage displayed on the zones?
The percentage represents the zone's strength based on how many times price has successfully retested the level without breaking it. A 100% zone is a highly respected level that has met or exceeded the retest threshold set in the user inputs.

What is the difference between a candidate zone and a confirmed zone?
A candidate zone is a fresh level created by a pivot point that has not yet been retested. A confirmed zone has survived at least one retest after a price departure, making it more reliable for trend analysis.

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.