Volume Support & Resistance multi timeframe

The Volume Support & Resistance multi timeframe indicator identifies and plots horizontal price levels based on high-volume candles across multiple timeframes to highlight significant market areas. By pinpointing candles where volume exceeds a moving average by a specific multiplier and is increasing, the tool provides traders with institutional-grade support and resistance zones.

Usage

The Usage section focuses on identifying key levels where price action is likely to react. The indicator draws horizontal lines at the high and low of candles that meet the volume criteria. These levels act as dynamic zones:

• Support: When the current price is above the line, it is colored green (or the designated support color), indicating a potential floor.
• Resistance: When the current price is below the line, it is colored red (or the designated resistance color), indicating a potential ceiling.

Traders can use this tool to trade from "level to level," typically looking at a smaller timeframe for execution while respecting the major volume levels from higher timeframes (e.g., 1H or 4H).

Details

The script calculates support and resistance by looking for "Major Volume" bars. A bar is considered major if its volume is greater than the Simple Moving Average (SMA) of volume multiplied by a user-defined threshold, and if the volume is rising compared to the previous bar. The tool uses request.security to fetch these levels from up to two additional timeframes, allowing for a comprehensive multi-timeframe analysis on a single chart. The levels are updated dynamically as price crosses them, changing their visual state between support and resistance.

Settings

General Setting

• Volume MA length: Sets the lookback period for the Volume Simple Moving Average.
• Volume Multiplier: Determines the threshold for identifying high-volume bars (e.g., 2x the average).
• Show labels: Toggles the visibility of price and timeframe labels next to the horizontal lines.

Current Timeframe

• Show first/second/third/fourth major volume level: Allows users to toggle specific historical volume levels on the current chart timeframe.

First/Second Timeframe

• Timeframe: Selects the external timeframe (e.g., 240 for 4-hour) to calculate levels from.
• Show major volume levels: Individual toggles for displaying specific volume-based levels from the chosen external timeframe.

FAQ

How do I use the multi-timeframe feature?

You can select different timeframes in the settings menu under the "First Timeframe" and "Second Timeframe" sections. This allows you to see 4-hour or daily volume levels while trading on a 5-minute or 15-minute chart.

Why do the line colors change?

The colors are dynamic. If the price is trading above a volume level, it is treated as support; if the price falls below it, it flip-flops to resistance.

How can I access Volume Support & Resistance multi timeframe?

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