Support Resistance - Dynamic

The Support Resistance - Dynamic indicator identifies and plots key horizontal support and resistance levels automatically based on historical pivot point density. It simplifies technical analysis by filtering for the most significant price levels where reversals have historically occurred.

Usage

The Usage section describes how the script can be used to identify key market levels. The indicator identifies pivot points and surrounds them with a calculation "channel." If a specific level contains a high concentration of pivot points, it is validated as a support or resistance line.

• Identifying Major Levels: Users can utilize the dynamic lines to find areas of high liquidity. A higher "S/R strength" setting will result in fewer, more significant lines, whereas a lower setting will show more minor levels.
• Trend Reversals and Breakouts: The script includes built-in logic to detect when price crosses these dynamic levels. A candle closing above a resistance line or below a support line can indicate a potential breakout or trend shift.
• Visual Customization: The indicator allows users to toggle the visibility of the original pivot points and the highest/lowest boundaries of the lookback period to declutter the chart.

Details

The script executes a logic-based loop to determine the validity of levels within a user-defined lookback period.

1. Pivot Detection: It identifies Pivot Highs and Pivot Lows based on the "Period for Pivot Points."
2. Channel Calculation: For every detected pivot, a channel width is calculated using the formula: (Highest High - Lowest Low) * Channel Width %.
3. Density Evaluation: The script checks how many other pivot points fall within that specific channel. If the count meets or exceeds the "S/R strength" value, a line is drawn.
4. Dynamic Updates: The script evaluates up to 40 pivot points and can display up to 20 dynamic lines simultaneously. Because it recalculates as new pivots form, the levels shift dynamically with price action.

Settings

• Period for Pivot Points: Sets the number of bars required on either side of a high or low to qualify it as a pivot point.
• Loopback Period: Determines how many historical bars the script analyzes to find pivots (range: 100–500).
• S/R Strength: The minimum number of pivot points that must fall within a channel for a Support/Resistance line to be plotted.
• Channel Width %: Defines the vertical thickness of the calculation zone around each pivot point as a percentage of the total price range in the lookback period.
• Label Location +-: Adjusts the horizontal offset of the price labels relative to the current bar.
• Line Style: Changes the visual appearance of the levels (Solid, Dotted, or Dashed).
• Line Color: Sets the color for the dynamic support and resistance lines.
• Draw Highest/Lowest Pivots in Period: Toggles the display of the absolute highest and lowest pivot lines within the lookback period.
• Show Point Points: Enables visual markers (PH/PL) on the chart for the raw pivot points used in calculations.

FAQ

How does the S/R Strength setting affect the chart? Increasing the S/R Strength requires more historical pivots to align at a specific price level before a line is drawn, which filters out weaker levels and highlights only the most significant zones.

Why do some lines disappear or appear suddenly? The indicator is dynamic. As price moves and the lookback window shifts, old pivot points may fall out of the lookback period, or new pivots may form that validate a previously hidden level.

How do I get access to Support Resistance - Dynamic? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.