Customizable Pivot Support/Resistance Zones

The Customizable Pivot Support/Resistance Zones indicator identifies key market reversal points and visualizes them as dynamic supply and demand zones for improved technical analysis. By utilizing pivot-high and pivot-low calculations, the tool plots zones that extend from the pivot price to the nearest body edge of the candle, providing a more comprehensive view of price reaction areas compared to standard lines.

Usage

The tool can be used to identify potential entry and exit points based on historical price reversals. When a new pivot is confirmed, the script draws a horizontal zone that remains on the chart until a new zone is formed.

• Zone Identification: Users can see where price has historically stalled or reversed.
• Price Interaction: By enabling "Change Colors According To Price," zones will dynamically swap between support (green) and resistance (red) colors based on whether the current market price is trading above or below them.
• Custom Filtering: A unique feature of this tool is the ability to filter zones using external indicators. For example, you can link an RSI and configure the tool to only plot support zones when the RSI is below 30, or link a Moving Average to only show resistance zones when the price is below the MA.

Details

The indicator relies on the ta.pivothigh() and ta.pivotlow() functions. A pivot is confirmed after a specific number of "Right Bars" have closed, meaning the zones appear with a slight delay to ensure the validity of the structural point. Unlike basic pivot indicators that only mark a single price point, this script captures the "wick-to-body" area of the pivot candle, which often represents a more accurate zone of liquidity.

Settings

Pivot Settings

• Left Bars: The number of bars to the left of a point required to confirm a pivot.
• Right Bars: The number of bars to the right required to confirm a pivot. This setting determines the lag/confirmation delay of the zone.

Custom Indicator Filter

• Enable Custom Source #1: Activates the external filtering logic.
• Custom Indicator Source #1: Allows selecting a source from another indicator on the chart (e.g., RSI, MACD, or MA).
• Value Must Be (Above/Below/Equal): Defines the mathematical condition for the filter to be valid for support or resistance.
• Value Requirement: The threshold the custom source must meet.
• Use Closing Price For Requirement: If enabled, compares the custom source against the closing price instead of a fixed numerical value.

Color Settings

• Support/Resistance Colors: Customize the edge and background colors for zones.
• Change Colors According To Price: Enables dynamic color switching based on current price location relative to the zone.

FAQ

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

Why do the zones appear several bars after the high or low? This is due to the "Right Bars" setting. The script must wait for a specific number of bars to close to confirm that the high or low was indeed a pivot point.

Can I use this for automated trading? Yes, the script includes built-in alert conditions for new zone creation, price touches, and zone breakouts which can be used to trigger notifications or automated strategies.