Auto Support Resistance

The Auto Support Resistance indicator automatically identifies and plots key horizontal support and resistance levels alongside a dynamic trend line to help traders visualize price boundaries and current market direction.

Usage

The Usage section describes how the script can be used to identify critical price zones. By calculating the highest and lowest price points over a user-defined lookback period, the tool provides a clear visual of where price has historically struggled to break through or where it has found a floor.

• Resistance Identification: Use the red horizontal line to identify potential sell zones or areas where price may stall.
• Support Identification: Use the green horizontal line to identify potential buy zones or areas where price may find a floor.
• Trend Analysis: The diagonal trend line connects a historical price point to the current close, helping traders visualize the immediate trajectory of the asset relative to the support and resistance boundaries.
• Breakout Trading: Traders can monitor for price crosses above resistance or below support to identify potential volatility shifts or trend reversals.

Details

The Auto Support Resistance tool utilizes high/low logic to determine its levels. The script identifies the maximum (ta.highest) and minimum (ta.lowest) close prices within the specified window. These values are then projected as horizontal lines from the start of the lookback period to the most recent bar. The trend line is constructed by connecting the closing price from the start of the lookback period directly to the current price, providing a simplified view of the directional move over that specific timeframe.

Settings

• (x) Bars Back: Determines the number of bars used to calculate the highest resistance and lowest support levels. Increasing this value will result in levels based on a longer-term perspective, while decreasing it will focus on more recent price action.

FAQ

How do I access the Auto Support Resistance indicator?

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

Can I adjust the sensitivity of the levels?

Yes, by modifying the "(x) Bars Back" setting, you can control how many historical candles the script considers when finding the highest and lowest price points.

Does this indicator provide alerts?

Yes, the script includes built-in alert functionality that triggers when the price crosses above the identified resistance level or below the identified support level.