Support Resistance Classification (VR)

The Support Resistance Classification (VR) indicator offers a sophisticated way to pinpoint support and resistance (SR) levels on any chart by leveraging higher time-frame (HTF) data within the visible range. Designed to aid traders in identifying significant levels of support and resistance, the indicator assigns these levels a classification from 1 to 10. A lower classification number signifies a stronger level of SR.

How to Trade with the Support Resistance Classification Indicator?

Trading indicators, like the Support Resistance Classification, on higher timeframes provide valuable insights that can influence your trading strategy on lower timeframes. By displaying SR levels on the chart's visible range, traders can better anticipate future fluctuations, which is essential for formulating robust trading strategies. As the chart is adjusted to show past price data, the indicator dynamically updates to exhibit new levels.

The classification algorithm evaluates the strength of each support and resistance level over the entire chart visible range, categorized from 1 (strongest) to 10 (weakest). This classification empowers traders to make informed decisions about potential entry and exit points.

For future reference, supports/resistances marked by the indicator can be easily noted on the chart using keyboard shortcuts like alt + h. This allows traders to effectively plan their trading actions based on historical SR data.

Key Details of the Indicator

Calculations are based entirely on the visible chart, ensuring that as the chart changes, the indicators are updated accordingly. Swings not broken are included, emphasizing the real-time adaptability of the indicator.

Even when 'value' is selected under Settings, it is crucial to recognize that breaks are always calculated spanning the entire line, irrespective of selected settings.

Configuring the Indicator Settings

Using the 'Fade' setting, the indicator can be adjusted such that lines become invisible after a certain number of breaks.

Value and Line Settings

• Value Settings:

  • SMA (Simple Moving Average), Upper/Lower: Movement is based on the moving averages themselves.
  • Fibonacci Pivot Point Levels, Previous High, Previous Low: Break calculations are limited to the most recent HTF values.
  • Swings: Further customization available (see Swing Settings in detail).

• Line Settings:

  • SMA, Upper/Lower: Entire lines are considered for break points based on latest values.
  • Fibonacci Pivot Point Levels, Previous High, Previous Low: Entire lines are assessed across latest values.
  • Swings: Detailed settings available in Swing Settings section.

Swing Configuration

Swing calculations occur at the current timeframe without HTF application. Use the options below for detailed customization:

• Left/Right: Determines pivot calculations using pivothigh and pivotlow.
• Show: Enables visibility of pivot points on your trading chart.

Set Configuration Details

• Number: Designate specific numbers for analysis.
• Type:
  • SMA (Simple Moving Average)
  • Previous High/Low
  • Upper/Lower (Bollinger Bands)
  • Pivot Point Levels ("Fibonacci")
• Length: Defines the 'number of bars' necessary for calculation (applicable to SMA, Upper/Lower settings).
• Multiplier (MULT): Standard deviation factors for Upper/Lower Bollinger Bands.
• HTF: Sets the Higher Time Frame applicable for specific settings like SMA, Upper/Lower, Previous High/Low, Fibonacci levels.

Displaying Values

To visually verify and compare up to 5 different values (except for Swings), activate options A to E, and select the numbers you wish to analyze. This feature can be instrumental in verifying which settings best align with your trading goals.

FAQ

How can I access the Support Resistance Classification (VR) indicator? To access the Support Resistance Classification (VR) indicator, visit the LuxAlgo Library, available on various charting platforms such as TradingView, MetaTrader (MT4/MT5), and NinjaTrader, free of charge.

What do the classification numbers signify in the Support Resistance Classification (VR) indicator? A classification number ranging from 1 to 10 indicates the relative strength of support/resistance levels, with 1 being the strongest.

Why do support and resistance levels change on the chart? As you adjust the visible range of your chart, the indicator recalculates to reflect new potential support and resistance levels, ensuring dynamic and up-to-date trading signals.