+ ATR Support and Resistance

The + ATR Support and Resistance indicator provides a systematic way to identify and visualize key market levels based on impulsive price movements relative to the Average True Range (ATR). It automatically detects significant candles and projects support and resistance zones from their origin, offering a visual framework for trend continuation and reversal points.

Usage

The tool identifies "impulsive" candles—those whose True Range exceeds a user-defined multiple of the ATR—to highlight areas where significant market participation occurred.

• Support & Resistance Zones: For upward impulsive candles, the indicator marks the zone from the open to the low as potential support. Conversely, for downward impulsive candles, the zone from the open to the high is marked as potential resistance. These zones remain active until price closes beyond them.
• Mid-Lines: Users can enable mid-lines for these impulsive candles, calculated from either the wicks or the body, providing a more granular "point of control" within the move.
• RSI Integration: The script includes a unique feature that identifies support and resistance around the RSI centerline (typically 48–52). In trending markets, these zones often act as dynamic levels where pullbacks find support or resistance.
• Confirmation Tools: Optional candle coloring based on On-Balance Volume (OBV) and a 200-period moving average helps filter signals by identifying the prevailing trend and volume direction.

Details

The core logic relies on the principle that the origin of an impulsive move represents a concentration of order flow. Mathematically, any candle with a range greater than the ATR (multiplied by the "ATR Multiple" setting) is tagged as an impulsive candle.

To prevent chart clutter, the script includes a "Wick %" filter, which ensures boxes are only drawn from candles with proportional wicks, avoiding zones derived from exhausted or highly volatile movements. The script uses dynamic arrays (line.new and box.new) to manage levels, ensuring that broken levels are retired to keep the chart clean.

Settings

General Inputs

• ATR Period: Sets the lookback period for the Average True Range calculation.
• ATR Multiple: Determines the sensitivity for impulsive candles; higher values result in fewer, more significant levels.
• Line Length: Controls how far the ATR close lines and RSI levels extend across the chart.
• Wick %: Defines the maximum allowable wick percentage for a candle to generate a zone.

Zone Customization

• Support/Resistance Zones: Separate groups to customize the border style, width, and fill colors for bullish and bearish zones.
• Mid Lines: Options to toggle mid-lines and choose whether they are calculated from wicks or the candle body.

RSI & Filters

• RSI Inputs: Adjust the period and levels for overbought/oversold detection and the mid-zone boundaries.
• Volume/OBV Candle Color: Toggles for trend-based coloring using On-Balance Volume or high-volume stop runs.
• Moving Average: Toggles a long-term trend filter (default 200-period).

FAQ

How do I use this for stop-loss placement?

The zones generated by impulsive candles often serve as logical structural points for stop-loss placement or trailing stops, as a close beyond these zones typically invalidates the impulsive move.

What is the best ATR Multiple to use?

The default is 1.55. For high-volatility assets like altcoins, a higher multiple (e.g., 2.0+) may be more effective, while stable pairs may require lower settings.

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.