Structured zigzag support&resistance

The Structured zigzag support&resistance indicator identifies multi-level support and resistance zones based on pivot points. By automatically classifying highs and lows, the tool helps traders visualize market structure and anticipate potential reversal or breakout areas through horizontal levels and diagonal trendlines.

Usage

The indicator can be used to identify key market structure developments such as Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL). These labels appear automatically at pivot points to assist in trend analysis.

Support and Resistance Zones

Traders can choose between two visual modes for horizontal levels:

• Lines: Draws dotted lines from recent pivot points to act as specific price targets or barriers.
• Boxes: Creates shaded rectangular zones based on the candle body and wick of the pivot bar, providing a more robust "area" of interest rather than a single price point.

Diagonal Market Structure

The script connects consecutive pivots with diagonal lines to visualize the current trend direction. Additionally, it can extend diagonal S/R lines from previous pivots to the right, allowing traders to see how past trend slopes might influence future price action.

Details

The script utilizes a ZigZag algorithm to filter out market noise based on user-defined depth and deviation. Unlike standard ZigZag indicators that only show the most recent path, this tool maintains a history of levels (controlled by the "Line count" setting) to build a comprehensive map of supply and demand zones. It also features a classification system that compares the current pivot to the previous one to assign market structure labels (HH, HL, etc.) automatically.

Settings

Current S/R Setting

• Horizontal type: Choose between "lines" or "boxes" to represent support and resistance levels.
• Depth: The minimum number of bars without a new peak or valley before a pivot is confirmed.
• Deviation: The minimum price change required to create a new pivot point.
• Color: Sets the color for the horizontal lines/labels.
• Extend lines: When enabled, horizontal lines continue to extend to the right of the chart.
• Line count: The maximum number of historical support/resistance levels to display on the chart.

Diagonal Line Setting

• Diagonal high/low color: Colors used for the boxes and market structure labels when a high or low is formed.
• Line thickness/style: Customizes the appearance of the diagonal trendlines.
• Zigzag count: The number of recent zigzag segments and labels to store in memory.
• Diagonal S/R line count: The number of extended diagonal lines to project into the future.
• Show diagonal S/R lines: Toggles the visibility of extended diagonal trendlines.

FAQ

How do I change the sensitivity of the pivot points?

You can adjust the "Depth" and "Deviation" settings in the "current S/R setting" group. Higher values will filter out more noise and show only major swings, while lower values will show more frequent, smaller pivots.

What is the difference between the "Lines" and "Boxes" horizontal types?

"Lines" plots a single horizontal level at the exact pivot price. "Boxes" creates a zone using the high/low and open/close of the pivot candle, which can better represent areas of liquidity.

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.