Support and Resistance: Triangles

The Support and Resistance: Triangles indicator identifies key market levels by constructing geometric triangle formations based on historical price extremes. By calculating the relationship between two peaks or troughs within a specified lookback period, the tool derives predictive support and resistance zones from the triangle's apex and base.

Usage

This tool can be used to identify potential rejection points and trend stabilization zones. The indicator plots horizontal levels derived from either Upwards or Downwards triangles.

• Support & Resistance Identification: In an Upwards Triangle, the midpoint (tip) typically acts as resistance while the base acts as support. For a Downwards Triangle, the midpoint (tip) acts as support while the base acts as resistance.
• Dynamic Level Updates: The indicator maintains only one active Upward and Downward triangle at a time. When a new valid formation is detected, the support and resistance levels shift to the new geometry.
• Long-term Filtering: By increasing the "Min Distance" and "Lookback Distance," users can filter for larger, more significant triangle formations that may hold better as long-term structural levels.

Details

The script uses specific geometric ratios to determine the "tip" of the triangle. By identifying two price points (highs for downward triangles, lows for upward triangles) that fall within a certain deviation of each other, it constructs an isosceles or equilateral triangle. The height of this triangle is determined by the "Bar Percent Increase" setting, which mimics natural ratios often found in technical analysis tools like Fibonacci retracements. Even after the visual lines of the triangles disappear due to platform plotting limits, the derived support and resistance levels remain on the chart to provide historical context.

Settings

Main Settings

• Show Triangles: Toggles the visibility of the geometric triangle lines on the chart.
• Triangle Zones: Determines which types of triangles to calculate (Upwards, Downwards, Both, or Neither).
• Max Deviation Allowed: Sets the maximum percentage difference allowed between two price points to qualify them as part of a triangle base.
• Lookback Distance: Defines how many bars the script searches to find a matching price point for the triangle base.
• Min Distance: Sets the minimum number of bars required between the two base points to ensure the triangle has sufficient width.
• Bar Percent Increase: A multiplier applied to the triangle height based on the horizontal spacing. A value of 0.005 approximates an equilateral triangle.

FAQ

How do I access Support and Resistance: Triangles?

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

Why do the triangles disappear but the dots remain?

TradingView has limits on the number of active line drawings. When new triangles are formed, older lines are removed to stay within these limits, but the support and resistance levels (plotted as circles) remain visible for historical reference.

What is the best way to make levels more significant?

To find more significant structural levels, increase the Min Distance and Lookback Distance. This forces the indicator to look for price points that are further apart, representing larger market cycles.