buy/sell signals with Support/Resistance

The buy/sell signals with Support/Resistance indicator provides a comprehensive trading framework by combining MACD-based momentum crossovers with dynamic pivot-based support and resistance levels.

Usage

This tool is designed to identify trend reversals and continuations through the interaction of two moving averages and historical price pivots. Traders can use the following components to inform their strategy:

• Momentum Signals: A bullish signal is generated when the Short MA crosses above the Long MA, while a bearish signal occurs when the Short MA crosses below the Long MA.
• Support & Resistance (S&R): The indicator identifies Swing Highs and Swing Lows based on a user-defined lookback period. These levels serve as confirmation zones or potential stop-loss points.
• Confirmation: A buy signal is considered stronger when it occurs near a support level (Swing Low). Conversely, a sell signal is more significant when it appears near a resistance level (Swing High).
• MACD Histogram: An integrated oscillator (displayed on the main chart) helps visualize the distance between moving averages to gauge momentum strength.

Details

The script utilizes a standard MACD logic derived from two Simple Moving Averages (SMA). The S&R levels are calculated using pivot points, which identify local extrema over a specific lookback period. These levels are plotted as step lines to provide clear horizontal reference points for price action. Additionally, the script includes a security fetching function that allows users to overlay price data from specific ticker symbols if desired, though it defaults to the current chart's data.

Settings

• Short MA Period: Sets the length for the faster moving average (default 12).
• Long MA Period: Sets the length for the slower moving average (default 26).
• Ticker Symbol: Allows users to input a specific ticker for data processing (default "NA" uses current chart).
• Lookback Period for S&R: Determines the number of bars required to identify a pivot high or low for support and resistance levels.

FAQ

How do I use the signals for entries?

Entries are typically taken when a moving average crossover occurs, ideally confirmed by the proximity to a support or resistance line to ensure a favorable risk-to-reward ratio.

Can I change the sensitivity of the support and resistance lines?

Yes, by adjusting the "Lookback Period for S&R" in the settings, you can make the levels more reactive to recent price action (lower value) or more focused on long-term structural levels (higher value).

How can I access buy/sell signals with Support/Resistance?

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