Support & Resistance Threesome

The Support & Resistance Threesome indicator tracks up to twelve simultaneous liquidity zones across major and minor structural levels to identify high-probability institutional reversal points. It combines dynamic zone tracking with touch counting and an RSI-based entry filter to provide a comprehensive system for spotting price reactions at key supply and demand areas.

Usage

The Usage section explains how to interpret the zones and entry signals provided by the tool.

Identifying Structural Levels

The indicator monitors two distinct types of liquidity zones simultaneously:

• Major Zones: Calculated using a wider lookback period (default 20 bars), these represent significant institutional levels.
• Minor Zones: Calculated using a shorter lookback period (default 8 bars), these represent recent price action and lower-timeframe structure.

Zone Lifecycle and Intensity

Each zone evolves based on price interaction:

• Active: The zone is intact. As price touches the zone without closing beyond it, the "Touch Count" increases (up to 5), causing the zone fill to become darker and the borders thicker.
• Confirmed: Once a zone is tested at least twice, its border turns yellow, signaling a higher-probability level.
• Filled: If price closes beyond the zone boundary, it is invalidated. The box turns gray with a dashed border. These often act as "flipped" levels (e.g., old resistance becoming new support).

Trading Signals

Reversal signals are generated when two conditions align:

1. Price interacts with a Major zone (High touches resistance or Low touches support).
2. The RSI filter confirms exhaustion (Overbought for shorts, Oversold for longs).

When a signal fires, an arrow is plotted alongside an automated Stop Loss (SL) line positioned outside the zone boundary.

Details

The script uses pivot-based logic to detect structural highs and lows. To prevent visual clutter, a duplicate filter suppresses new zones if they form too close to existing ones (3x buffer for major, 2x for minor).

The "Buffer" system ensures zones are areas rather than single lines. Users can choose between ATR-based (adaptive to volatility), Percent-based (fixed percentage of price), or Fixed (tick-based) widths. To ensure validity, signals only fire on zones that are older than the lookback period, preventing entries on unconfirmed, newly formed pivots.

Settings

Liquidity Zones

• Major Swing Lookback: The window for detecting major pivot highs/lows.
• Minor Swing Lookback: The window for detecting minor pivot highs/lows.
• ATR Length: Lookback for ATR-based buffer calculations.
• Max Zone Age (bars): Maximum duration a zone remains active before being replaced.

Buffer

• Buffer Mode: Selection between ATR, Percent, or Fixed calculation methods.
• ATR Multiplier / Percent % / Fixed Buffer: Parameters to define the zone half-width.

Entry — RSI

• RSI Length: Lookback period for the RSI momentum filter.
• RSI Overbought/Oversold: Thresholds required for a signal to fire.

Entry — SL

• SL Mode: Calculation method for the automatic stop loss line.
• SL Multiplier / % / Fixed: Parameters defining the distance of the SL from the zone.

Colors

• Major/Minor Resistance & Support: Custom colors for the various zone types.
• Confirmed Border: Color applied when a zone reaches a touch count of 2+.

FAQ

How do I know which zones are the strongest? Stronger zones feature darker fills and thicker borders, indicating they have been tested multiple times without being broken. Confirmed zones (yellow border) are generally more reliable than fresh zones.

Can this indicator be used on all assets? Yes, the script is designed for all asset classes including Forex, Indices, Crypto, and Commodities. It performs best on higher timeframes such as H1, H4, and D1.

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