Pivots Support Resistance Zone

The Pivots Support Resistance Zone indicator identifies and plots dynamic supply and demand areas on the chart by analyzing the relationship between consecutive pivot points. It provides traders with clear visual zones that represent potential turning points in price action based on structural shifts in market highs and lows.

Usage

The tool can be used to identify key areas of interest for potential entries, exits, or stop-loss placements. Unlike single-line levels, these zones provide a range of price where institutional or significant market activity has previously occurred.

• Support Zones: These are plotted when a new Pivot Low is lower than the previous Pivot Low. The area between these two points forms the support zone.
• Resistance Zones: These are plotted when a new Pivot High is higher than the previous Pivot High. The area between these two points forms the resistance zone.

Traders often look for price to return to these zones for "retests" to confirm the strength of the trend or to look for reversal signals.

Details

The script utilizes the ta.pivothigh() and ta.pivotlow() functions to detect market structural points. The logic for zone creation is as follows:

• Support Logic: A zone is established when price breaks below a previous pivot low, creating a "Lower Low" structure. The top of the zone is the old pivot low, and the bottom is the new pivot low.
• Resistance Logic: A zone is established when price breaks above a previous pivot high, creating a "Higher High" structure. The bottom of the zone is the old pivot high, and the top is the new pivot high.

This approach focuses on the expansion of price ranges, highlighting areas where momentum has pushed the market into new territory.

Settings

LENGTH LEFT / RIGHT

• Pivot High (Left/Right): Determines the number of bars to the left and right required to confirm a Pivot High. Higher values result in more significant, longer-term levels.
• Pivot Low (Left/Right): Determines the number of bars to the left and right required to confirm a Pivot Low.

Resistance Color / Support Color

• Resistance Color: Sets the color for the Resistance Upper/Lower lines and the background fill.
• Support Color: Sets the color for the Support Upper/Lower lines and the background fill.

FAQ

How do I use the Pivots Support Resistance Zone?

You can use it to identify "Break and Retest" opportunities or to set target zones for take-profits. The zones update dynamically as the market creates new structural highs and lows.

Can I adjust the sensitivity of the zones?

Yes, by adjusting the Left and Right Length settings for the Pivot Highs and Lows. Smaller values will create more frequent, smaller zones, while larger values will identify major structural areas.

How can I access this indicator?

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