pivot semaphore support&resistance levels

The pivot semaphore support&resistance levels indicator automatically identifies and plots multi-level support and resistance zones based on historical price pivots. It is designed to help traders spot significant structural areas such as Higher Lows (HL), Lower Lows (LL), Higher Highs (HH), and Lower Highs (LH) across different lookback periods.

Usage

The indicator can be used to visualize key market levels where price is likely to react. Users can monitor up to three different sets of pivot levels simultaneously, each representing a different "depth" or timeframe context.

• Identifying Reversal Zones: Extreme pivot levels (often configured with larger left/right lookback settings) represent significant structural points where the market has a higher probability of reversal.
• Trend Analysis: By tracking the sequence of these levels, traders can identify whether the market is making higher highs or lower lows.
• Dynamic Level Management: The indicator features a toggle to "Extend lines." When disabled, lines will stop extending once the price reaches or "touches" the level, indicating that the zone has been tested or mitigated.

Details

The script functions by scanning for pivot highs and pivot lows using customizable left and right bar requirements. When a pivot is confirmed, a horizontal line and a corresponding price label are drawn starting from the point of origin.

The "semaphore" concept refers to the tiered approach to these levels. By utilizing multiple calculation groups, traders can distinguish between minor fluctuations and major structural support/resistance. The implementation uses arrays to manage a specific number of lines for each tier, ensuring the chart remains clean while providing historical context.

Settings

Pivot Settings (1, 2, and 3)

Each of the three pivot groups contains the following parameters:

• Show first/second/third: Toggles the visibility of that specific pivot tier.
• Left / Right: The number of bars required to the left and right of a candle to confirm it as a pivot.
• Line count: Determines how many historical levels are kept on the chart for this tier.
• Extend lines: If enabled, lines extend infinitely to the right. If disabled, lines stop extending when price interacts with the level.
• Line thickness / style / color: Visual customization options for the rendered support and resistance levels.

FAQ

How do I interpret the different colors?

The colors are used to distinguish between the different pivot tiers (e.g., short-term vs. long-term levels). You can customize these in the settings to match your personal trading style or to represent different strengths of support and resistance.

What happens when price touches a level?

If "Extend lines" is turned off, the line will stop drawing as soon as the price action reaches that specific level, signaling that the level has been breached or tested.

How do I access this tool?

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