Volume Support and Resistance

The Volume Support and Resistance indicator identifies high-probability supply and demand zones by analyzing transaction volumes across granular price slices within a specific historical range.

Usage

The tool operates by segmenting the price range between momentum extremes into "slices" and calculating the separate green and red volume within each layer. Traders can use this to identify the most significant resistance levels (highest green-to-red volume ratio) and support levels (highest red-to-green volume ratio).

Examples of use include:

• Identifying Major Reversal Zones: Look for the resistance boxes where green volume significantly outweighs red volume, indicating a strong historical rejection or concentration of selling pressure.
• Support Confirmation: Use the support levels to identify areas with a high density of red-to-green volume ratios to find potential bounce points.
• Granular Analysis: Adjust the "High Slice" settings to increase the precision of the volume calculation within specific price ranges.

Details

The script executes a multi-step calculation:

1. Momentum Extremes: It identifies the highest and lowest "momentum" prices within the lookback period based on candle body size and wick proportions.
2. Dynamic Slicing: The range between these extremes and the current close is divided into a user-defined number of layers.
3. Volume Attribution: For every candle in the lookback period, volume is proportionally attributed to each slice based on how much of the candle's range overlaps with that slice.
4. Ranking: Layers are ranked based on their volume ratios, green/red candle counts, and price proximity to determine the "Best Support" and "Best Resistance" zones.

Settings

General Settings

• Start Candle: Determines the offset from the current bar to begin the analysis.
• Lookback: The number of historical candles used for volume calculation (maximum 600).

Resistance Settings

• Resist High Slice: The maximum number of segments to divide the resistance range into for precise volume ratio identification.
• Resistance Number: The number of top resistance zones to display on the chart.
• Show Resistances Volume Density: Enables a gradient visual showing the distribution of volume across the resistance layers.
• Resistance Color: Sets the base color for resistance zones and volume gradients.

Support Settings

• Supp High Slice: The maximum number of segments to divide the support range into.
• Support Number: The number of top support zones to display.
• Show Supports Volume Density: Enables a gradient visual showing the distribution of volume across the support layers.
• Support Color: Sets the base color for support zones and volume gradients.

FAQ

How do I use this indicator for intraday trading?

You can adjust the "Start Candle" and "Lookback" settings to focus on specific high-volume sessions or recent volatility spikes to find relevant intraday levels.

Why do I see a calculation error (> 500ms)?

This occurs when the combination of a high Lookback and high Slice count exceeds TradingView's processing limits. To fix this, reduce the "Lookback" or "High Slice" inputs.

How can I access Volume Support and Resistance?

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