Support Resistance Buy Sell

The Support Resistance Buy Sell indicator is a technical analysis tool designed to identify potential entry and exit points by calculating percentage-based breakout levels derived from recent price extremes. It provides traders with a visual framework for understanding trend reversals and price action within a defined lookback period.

Usage

The Support Resistance Buy Sell indicator can be used to identify trend shifts when price crosses specific threshold levels near established support and resistance.

• Buy Signals: Occur when the closing price crosses above the Buy Level. This level is calculated as a percentage increase from the lowest low of the lookback period, suggesting upward momentum from a support floor.
• Sell Signals: Occur when the closing price crosses below the Sell Level. This level is calculated as a percentage decrease from the highest high of the lookback period, suggesting downward pressure from a resistance ceiling.

Traders can use these signals to confirm potential reversals or to time entries within a ranging market. The indicator works best when the "Percent" setting is calibrated to the volatility of the specific asset being traded.

Details

The script functions by identifying the highest high and lowest low over a user-defined period. These extremes act as the primary Resistance and Support levels.

To generate actionable signals, the script calculates two secondary levels:

1. Buy Level: Support * (1 + Percent / 100)
2. Sell Level: Resistance * (1 - Percent / 100)

By requiring the price to cross these internal levels rather than the absolute extremes, the indicator aims to filter out minor fluctuations while capturing significant shifts in sentiment.

Settings

• Period: Sets the lookback window (number of bars) used to calculate the highest high (Resistance) and lowest low (Support).
• Percent: Determines the percentage offset from the support and resistance levels to create the Buy and Sell trigger lines. A higher percentage requires a larger price move to trigger a signal.

FAQ

How do I interpret the lines on the chart?

The outermost green lines represent the absolute high and low of the lookback period. The inner red and blue lines represent the trigger levels for sell and buy signals, respectively.

Can I change the sensitivity of the signals?

Yes, you can adjust the "Period" to change the lookback duration or modify the "Percent" setting to make the signals more or less sensitive to price changes.

How can I access Support Resistance Buy Sell?

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