Sup/Res Levels

The Sup/Res Levels indicator identifies and plots horizontal pivot-based support and resistance levels while providing volume-filtered breakout signals. It is designed to help traders distinguish between significant price breaks and market noise by incorporating volume momentum and candle wick analysis.

Usage

The tool plots dynamic support (green) and resistance (red) lines based on user-defined pivot points.

• Breakout Signals (B): A label marked "B" appears when the price crosses a level with volume momentum exceeding the specified threshold. This indicates a potentially strong trend continuation or reversal.
• Wick Signals: Labels for "Bull Wick" or "Bear Wick" appear when a level is crossed but the candle structure suggests significant rejection (e.g., a long lower wick on a bullish break), which may signal a false breakout or weakening momentum.
• Filtering: By adjusting the Volume Threshold, traders can filter out low-conviction breaks, allowing them to focus on high-probability setups or decide when to remain sidelined.

Details

The script utilizes ta.pivothigh() and ta.pivotlow() functions to identify structural peaks and valleys. The "Volume Thres" logic is powered by a volume-based oscillator—calculated as the percentage difference between a 5-period and 10-period EMA of volume. This ensures that breakout signals are only triggered when there is a relative surge in trading activity compared to recent bars.

Settings

• Breaks: Toggles the visibility of breakout and wick labels on the chart.
• Left Bars: The number of bars to the left of a potential pivot point required for it to be identified as a level.
• Right Bars: The number of bars to the right of a potential pivot point required for it to be identified as a level.
• Volume Thres: The percentage threshold the volume oscillator must exceed to trigger a "B" breakout signal.

FAQ

How do I use the volume filter effectively?

Increase the Volume Thres value if you are seeing too many false breakout signals in choppy markets. Decrease it if you are missing valid moves in low-volatility environments.

What is the difference between a "B" signal and a "Wick" signal?

A "B" signal represents a clean break with high volume, while a "Wick" signal suggests that although price crossed the level, the candle shape indicates price rejection or a lack of closing conviction.

How can I access Sup/Res Levels?

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