Strong Retest Zones | ProjectSyndicate

The Strong Retest Zones indicator automatically identifies and ranks swing-based price levels that demonstrate consistent market reactions. It tracks the lifecycle of each zone—from formation and breakout to retests—assigning a live power-ranking score (0–10) based on volume, rejection depth, and interaction frequency to highlight only the most significant market structures.

Usage

The Usage section describes how the script can be used to identify high-probability reversal or continuation areas. The indicator focuses on "flipping" zones, where a support level becomes resistance (or vice versa), and uses color changes to signal these state shifts.

• Identifying High-Quality Levels: Focus on zones with an "Elite" or "Strong" tier (scores 7/10 or higher). These represent areas where price has historically shown significant volume and aggressive wick rejections.
• Monitoring Zone Flips: Watch for the two-tone shading. If a green zone (Tone A) is broken and price begins to retest it from the opposite side, it will shift to red (Tone B), signaling a successful support-to-resistance flip.
• Clean Charting: Use the "Overlap Suppression" and "Strong-Only Filter" to remove noise. This ensures that if multiple swings occur in the same price vicinity, only the most relevant, high-scoring level is displayed.
• Alert Integration: Configure proximity alerts to be notified when price approaches an "Elite" level. This allows for preparation before price actually touches the zone.

Details

The script utilizes several advanced logic systems to maintain accuracy and performance:

• Power-Ranking System: The 0–10 score is calculated using three weighted factors: the number of touches, the relative volume traded during those touches compared to a baseline, and the length of rejection wicks relative to the ATR.
• Time-Based Decay: To ensure current relevance, the indicator features an idle-decay mechanism. If a zone is ignored by price for a long period, its score naturally degrades, preventing outdated levels from cluttering the analysis.
• Normalization: Users can choose between "Natural" heights based on the original swing wicks or "Normalized" heights. Normalization uses ATR-based calculations to ensure every zone has a uniform thickness for consistent visual analysis across different assets.
• Performance Optimization: A lookback window and a maximum zone cap are implemented to ensure the script remains fast. Retired or low-scoring zones are fully purged from memory rather than just hidden.

Settings

Display

• Zone Side: Filters the display to show only Bullish zones, only Bearish zones, or both.
• Touch Markers: Controls the visibility of glyphs that appear when price interacts with a zone (All, Last, or None).
• Show Strength Labels: Toggles the in-zone text containing the score, stars, tier, and retest count.
• Lookback (bars): Limits zone detection to a specific number of recent bars to improve load times.
• Hide Overlapping Zones: When enabled, the script prevents multiple zones from stacking in the same price area.

Swing Detection

• Pivot Left/Right: Sets the sensitivity of the swing detection (higher values find more significant, long-term peaks/troughs).
• Max Zone Life: The maximum duration a zone can exist before being automatically retired.
• Snap Right Edge: Adjusts the box length to end exactly at the most recent price touch.

Strength Scoring

• Show Only Strong Zones: Filters out any level that does not meet the "Strong Threshold."
• Strong Threshold: The minimum score (0–10) required for a zone to remain visible.
• Scoring Weights (Touches/Volume/Wick): Allows users to customize how much importance is placed on different types of price interaction.
• Decay Strength: Toggles whether ignored levels lose points over time.

FAQ

How do I interpret the "R:" value in the zone label? The "R:" value stands for Retest Count. It tracks every distinct time price has entered the zone and been rejected since the zone was formed.

What is the difference between Tone A and Tone B colors? Tone A represents the zone's initial state (e.g., Support). Once price breaks through the level and retests it from the other side, it switches to Tone B to show it has "flipped" its role.

How do I get access to the Strong Retest Zones indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.