Support Resistance Ultimate

The Support Resistance Ultimate indicator is a comprehensive tool designed to identify key market levels using two primary methodologies: price action pivot points and volume-based Point of Control (POC). It provides traders with a dynamic way to visualize potential reversal and consolidation zones by assessing both price history and market participant consensus.

Usage

The tool can be utilized to locate significant price floors and ceilings that may influence future price movement. Traders can choose to display levels derived from standard price pivots, volume-based levels, or both simultaneously.

• Pivot-Based Levels: Useful for forecasting turning points based on historical high/low or close price extremes.
• Volume-Based Levels: Identifies the Point of Control (POC) over a rolling window, highlighting areas where the highest concentration of trading activity occurred.
• Strength Assessment: The indicator automatically calculates an importance score for each level based on how many times price has touched the level and the volume traded near it. This is visually represented by the thickness of the lines, with thicker lines indicating higher significance.

Details

The script executes a dual-step process:

1. Level Identification: It scans historical data to find pivot points based on user-defined lookback periods or calculates a rolling POC using a volume profile-like calculation.
2. Importance Scoring: Once a level is identified, the script performs a secondary pass to count touches and aggregate volume around that specific price coordinate. The weight of these factors determines the line width (1 to 5), allowing for an intuitive hierarchy of support and resistance.

Settings

Main Settings

• Show Pivot-Based Levels: Enables or disables levels derived from price action pivots.
• Show Volume-Based Levels: Enables or disables levels derived from the Rolling Point of Control.
• Number of Lines to Show: Controls the maximum number of support/resistance lines displayed on the chart (1-12).
• Show touch | volume count: Displays numerical data for touches and volume next to each level for precise analysis.

Calculation Settings

• Bars to the Left/Right: Defines the window size for identifying significant pivot points.
• Source for Pivot Levels: Sets the calculation source to either 'Close' or 'High/Low'.
• Lookback Period for Rolling POC: Adjusts the sample size used to determine the price level with the highest volume.

Visuals

• Support/Resistance Colors: Sets the default colors for price floors and ceilings.
• Use Alternative Colors: Allows for separate color schemes for pivot-based vs. volume-based levels to avoid confusion when both are active.

FAQ

How do I interpret the different line thicknesses? Thicker lines represent more "important" levels. The indicator calculates this importance based on a combination of how many times price has interacted with that level (touches) and the amount of volume traded at that price.

Can I use this for intraday scalping? Yes, by adjusting the "Bars to the Right" and "Quick Right Bars" settings, you can make the indicator more responsive to recent price action, making it suitable for lower timeframe analysis.

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