Support Resistance Strategy V4

The Support Resistance Strategy V4 indicator provides a framework for identifying breakout opportunities based on historical price levels and moving average crosses. It aims to help traders visualize key market floor and ceiling levels to determine potential trend reversals or continuations.

Usage

The Support Resistance Strategy V4 is primarily used to identify entry points when price breaks through established horizontal levels.

• Long Entry: Occurs when the price crosses above the current resistance level.
• Short Entry: Occurs when the price crosses below the current support level.

The indicator plots these levels directly on the chart, allowing traders to observe price action relative to historical highs and lows calculated over a specific lookback window. Additionally, it features optional bar coloring to help identify the prevailing market trend relative to these key levels.

Details

The script identifies support and resistance levels based on specific conditions involving a Simple Moving Average (SMA) and price action:

• Resistance: Established using the highest price over the lookback period when the SMA crosses above the closing price.
• Support: Established using the lowest price over the lookback period when the closing price crosses above the SMA.

By utilizing ta.valuewhen, the script maintains these levels until a new cross-event occurs, creating a stepped visualization of support and resistance. The strategy logic triggers signals only on the initial breakout (the first bar where the crossover/crossunder occurs) to avoid repetitive signals within the same trend.

Settings

• Lookback: Determines the number of bars used to calculate the highest high (resistance) and lowest low (support).
• Draw Candles: A toggle to enable or disable custom bar coloring based on whether the price is above resistance or below support.

FAQ

How do I use the Support Resistance Strategy V4?

Apply the script to your chart and look for the plotted support (red) and resistance (green) lines. Strategy signals are generated when price closes outside of these boundaries.

Can I adjust the sensitivity of the breakouts?

Yes, by changing the Lookback setting. A lower value will make the levels more reactive to recent price action, while a higher value will focus on more significant historical levels.

How can I access the Support Resistance Strategy V4?

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