Ai Golden Support and Resistance

The Ai Golden Support and Resistance indicator provides an automated framework for detecting actionable supply and demand zones based on market structure and volatility-scaled breakout events. By utilizing an ADR-scaled ABCD pattern recognition system, the tool identifies key pivot levels and confirms them when price action validates the structure through a breakout, allowing traders to visualize high-probability retest and rejection zones.

Usage

The indicator can be used to identify key areas of interest where price is likely to react. It dynamically adapts its sensitivity based on the Average Daily Range (ADR), ensuring the zones remain relevant across different timeframes and assets.

• Breakout Confirmation: Dotted lines appear when price closes beyond a seed pivot level, marking the start of a confirmed zone.
• Zone Persistence: Supply (Red) and Demand (Green) boxes auto-extend to the right until price closes through a specific invalidation threshold derived from the original structure.
• Risk Profiles: Users can select between High, Medium, and Low risk settings to adjust how strictly the script filters for pivots and explosive price moves.
• Explosive Move Filtering: The script highlights zones originating from high-momentum streaks (consecutive same-color candles), which often carry a higher probability of reaction upon a retest.

Details

The core logic relies on alternating pivot highs and lows to identify ABCD sequences. These sequences are validated based on specific retracement and extension ratios (BC retracing AB, and CD extending beyond BC). Once a sequence is found, the script monitors for a breakout. Upon confirmation, the tool calculates a local extreme range to construct the zone height, rather than using fixed pip widths. This ensures that the support and resistance boxes are directly tied to the local price structure.

Settings

• Type Of Support and Resistance: (High/Medium/Low Risk) - Adjusts the pivot lookback window, the required length of candle streaks for "explosive" moves, and the ADR-based volatility thresholds.
• ADR Length: Defines the lookback period for calculating the Average Daily Range to normalize volatility.
• Visual Toggles: Allows users to customize the visibility of labels, breakout reference lines, and zone colors.

FAQ

How do I use the different Risk Profiles?

The "High risk" setting is more sensitive and will produce more zones with smaller ADR thresholds, while "Low risk" uses stricter filters and wider pivot lookbacks for more significant structural levels.

What causes a zone to disappear?

A zone becomes inactive and stops extending when price closes beyond its rule-based invalidation threshold, indicating the level is no longer providing support or resistance.

How do I get access to the Ai Golden Support and Resistance?

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