Support/Resistance V2 Indicator

The Support/Resistance V2 indicator identifies multi-timeframe price floors and ceilings by combining RSI, CMO, and pivot logic to highlight significant horizontal levels.

Usage

The Usage section describes how the script can be used to identify key market turning points. Users can apply this indicator to find horizontal support and resistance levels that are derived from any user-defined timeframe. This allows traders to view high-timeframe levels (such as Daily or Weekly) while trading on a lower-timeframe chart (such as the 15-minute or 1-hour).

• Support Identification: Green horizontal lines appear when the indicator detects oversold conditions paired with specific momentum shifts and price pivots. These act as potential areas for long entries or stop-loss placement.
• Resistance Identification: Red horizontal lines appear when overbought conditions and momentum shifts coincide with recent price peaks. These serve as potential targets or areas for short entries.
• Timeframe Filtering: By adjusting the timeframe setting, users can control the density and significance of the levels. Higher timeframes generally produce fewer, more significant levels, while lower timeframes provide more frequent intraday levels.

Details

The script utilizes a hybrid approach to define support and resistance, moving beyond simple price peaks. It incorporates the following technical components:

1. Relative Strength Index (RSI): Filters for extreme price extensions (below 25 for support and above 75 for resistance).
2. Chande Momentum Oscillator (CMO) with HMA: The script calculates momentum based on Hull Moving Averages. It looks for a specific momentum surge (CMO > 50 for support or < -50 for resistance) to confirm the strength of the pivot.
3. Pivot Calculations: The script identifies price pivots using highest and lowest price deviations over a specific lookback period.
4. Multi-Timeframe Execution: Through the request.security function, the script calculates these conditions on the target timeframe and projects the resulting levels onto the current chart.

Settings

• S/R Timeframe: Determines the timeframe from which the support and resistance levels are calculated. Leaving this blank defaults to the current chart timeframe.

FAQ

How do I adjust the number of levels shown on my chart? To see more or fewer levels, change the "S/R Timeframe" in the settings. Selecting a higher timeframe will result in broader, more significant levels, while a lower timeframe will display more frequent, localized price levels.

Why do some lines disappear or update? The indicator draws lines based on the most recent pivot criteria met on the specified timeframe. As new price action confirms newer support or resistance zones, the indicator updates to reflect the most current market structure.

How can I access the Support/Resistance V2 indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.