Support & Resistance Zone Hunter

The Support & Resistance Zone Hunter indicator is a professional structural mapping tool that automatically identifies high-probability support and resistance areas in real time using pivot detection and range validation. It aims to provide traders with a dynamic view of market architecture, tracking the lifecycle of zones from formation to breakout events.

Usage

The indicator can be used to identify key areas of liquidity and price reaction.

• Zone Bias: Zones are color-coded based on price interaction. If price touches the resistance boundary first, the zone adopts a bullish bias (green). If it touches support first, it adopts a bearish bias (red). New zones remain neutral (blue) until a boundary is tested.
• Breakouts: Diamond-shaped markers appear when price closes outside an active zone. These signals help identify momentum shifts and structural expansions.
• Filtering: Use the "Minimum Range %" setting to filter out minor price fluctuations, ensuring only significant structural levels are drawn. Enabling the volume filter ensures that zones are only created during periods of higher relative market participation.

Details

The script identifies pivot points based on a user-defined lookback period. A zone is qualified only when both a top and bottom pivot are established within the specified range and volume parameters.

• Lifecycle: A zone remains "active" until price has touched both the top and bottom boundaries. Once both are touched, the zone stops expanding horizontally but remains visible for historical context.
• Breakout Logic: To prevent signal spam, the indicator employs a "cool-off" period and requires price to return within the zone boundaries before a subsequent breakout signal can be triggered from the same zone.

Settings

Settings

• Pivot Lookback: The number of bars used to detect pivot highs and lows.
• Minimum Range %: The minimum percentage distance required between the support and resistance levels to qualify as a valid zone.
• Require High Volume: When enabled, zones are only formed if the current volume is above its 50-period moving average.

Breakout Signals

• Show Breakout Diamonds: Toggles the visibility of diamond breakout markers.
• Diamond Cooloff Period: The minimum number of bars required between consecutive breakout signals.

Style

• Bullish/Bearish/Neutral Zone: Customizable colors for the different zone biases.
• Lines: Sets the color for the support, resistance, and mid-point lines.
• Bull/Bear Diamond: Sets the color for the breakout signal markers.

FAQ

How do I interpret the different zone colors?

Green zones indicate a bullish bias (resistance was tested first), red zones indicate a bearish bias (support was tested first), and blue zones are neutral/fresh areas where a bias has not yet been established.

What do the diamond symbols represent?

The diamond symbols represent structural breakouts, occurring when the price closes above or below the boundaries of an active support and resistance zone.

How can I access this tool?

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