Support Resistance Major/Minor Market Structure

The Support Resistance Major/Minor Market Structure indicator automatically detects and plots significant price zones in financial markets, categorizing them into major and minor levels across both short-term and long-term intervals.

Usage

The indicator provides a multi-layered view of market structure by identifying four distinct types of horizontal levels:

• Major Long-Term S&R: Represents significant historical reversal points over an extended period. These are the strongest barriers for price movement.
• Minor Long-Term S&R: Identifies temporary pauses or consolidation zones within a broader long-term trend.
• Major Short-Term S&R: Highlights critical price barriers within recent price action, useful for identifying immediate reversals.
• Minor Short-Term S&R: Tracks quick price reactions and micro-reversals within short-term fluctuations.

Traders can use these levels to establish entry and exit points, set stop-losses, or confirm breakouts. For instance, a break above a Major Resistance level often signals a strong bullish continuation, while a bounce off Major Support suggests a high-probability reversal zone.

Details

The indicator utilizes a custom Zig Zag logic based on pivot points to filter price noise and identify meaningful peaks and troughs. By utilizing two distinct pivot periods (Short-Term and Long-Term), the script separates market noise from significant structural shifts.

• Static Levels: Unlike moving averages, these are fixed horizontal zones based on historical supply and demand.
• Hierarchical Filtering: The script differentiates between "Major" (significant trend changes) and "Minor" (intermediate pauses) levels to help traders prioritize different market signals.

Settings

Zig Zag Logic

• Long Term S&R Pivot Period: The lookback window used to calculate significant long-term structural levels.
• Short Term S&R Pivot Period: The lookback window used to calculate immediate short-term structural levels.

Long Term Lines

• Long Term Major Line, Color: Toggle visibility and select colors for major long-term support and resistance.
• Long Term Minor Line, Color: Toggle visibility and select colors for minor long-term support and resistance.
• Line Styles/Width: Customize the visual appearance (solid, dotted, dashed) and thickness for major and minor long-term lines.

Short Term Lines

• Short Term Major Line, Color: Toggle visibility and select colors for major short-term support and resistance.
• Short Term Minor Line, Color: Toggle visibility and select colors for minor short-term support and resistance.
• Line Styles/Width: Customize the visual appearance (solid, dotted, dashed) and thickness for major and minor short-term lines.

FAQ

How do I interpret the difference between Major and Minor levels? Major levels represent significant trend turning points identified by longer pivot periods, whereas Minor levels represent shorter-term pauses or "speed bumps" in price action.

Can I use this for day trading? Yes, by adjusting the Short Term S&R Pivot Period, day traders can identify intraday levels, while keeping the Long Term levels active to maintain perspective on the broader trend.

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