Support and Resistance (High Volume Boxes)

The Support and Resistance (High Volume Boxes) tool identifies key market levels by combining pivot point detection with delta volume analysis to highlight zones of high liquidity and potential price reversals.

Usage

The script visualizes support and resistance zones as dynamic boxes on the chart. These boxes are generated when a pivot high or low coincides with a significant volume threshold, ensuring that only levels with high market activity are highlighted.

• Support Boxes (Green): Appear at pivot lows with high positive volume. A green diamond (◆) appears when price tests the zone and the support holds, suggesting a potential long entry.
• Resistance Boxes (Red): Appear at pivot highs with high negative volume. A red diamond (◆) appears when price tests the zone and the resistance holds, suggesting a potential short entry.
• Role Reversals: If price breaches a box, the indicator tracks the shift in supply and demand. Labels such as "Break Sup" or "Break Res" signal the breakout, and the box style may change to indicate the level is now acting as its opposite role (e.g., broken resistance becoming support).
• Intensity: The color opacity of the boxes scales based on the relative volume of the pivot, with more intense colors representing higher volume levels.

Details

The indicator calculates volume delta to distinguish between buying and selling pressure. It uses a lookback period to identify pivot points and compares the volume at those pivots against a filtered volume average (Delta Volume Filter Length). The boxes are extended horizontally until a new level of the same type is formed, providing a continuous reference for historical price action. When a breakout occurs, the script utilizes logic to track whether the level has flipped its role, reflecting the concept that breached support often becomes resistance and vice versa.

Settings

• Lookback Period: Defines the number of bars used to identify pivot highs and lows.
• Delta Volume Filter Length: Sets the lookback window for the volume filter. Increasing this value will result in stricter filtering, displaying only boxes with exceptionally high volume.
• Adjust Box Width: Controls the vertical height of the boxes based on the Average True Range (ATR).

FAQ

• How do I interpret the colored diamonds? Diamonds represent "holds." A green diamond signifies price tested a support box and bounced, while a red diamond signifies price tested a resistance box and was rejected.
• What does a dashed box mean? A dashed box typically indicates a level that has been breached or is currently undergoing a role reversal (e.g., support turning into resistance).
• How can I access Support and Resistance (High Volume Boxes)? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.