Volatility semaphore Support&Resistance multi timeframe

The Volatility semaphore Support&Resistance multi timeframe indicator identifies and projects significant support and resistance levels based on high-volatility price action across multiple timeframes. By detecting candles that exceed a specific ATR-based threshold and meet body-to-wick ratio requirements, the tool automatically plots horizontal levels that act as historical key zones for price reaction.

Usage

This tool can be used to identify key pivot zones that are often ignored by standard pivot high/low indicators. Traders can use these levels to:

• Identify Major Zones: Focus on high-volatility candles from higher timeframes (e.g., Daily or 4-hour) to find institutional supply and demand areas.
• Filter Noise: Use the "Wick percentage" setting to ensure levels are only drawn from "decisive" candles with large bodies, filtering out high-volatility indecision wicks.
• Multi-Timeframe Analysis: Enable up to three different timeframes simultaneously to see how intraday price action reacts to long-term volatility benchmarks.

Details

The script operates on a "semaphore" principle, marking the high and low of a candle as support and resistance whenever that candle meets two specific criteria:

1. Volatility Threshold: The candle's total range (High - Low) must be greater than the Average True Range (ATR) multiplied by a user-defined factor.
2. Body Consistency: The candle must have a body-to-range ratio higher than the defined "Wick percentage," ensuring the move represents strong directional conviction.

When these conditions are met, the script uses a line array to project the levels forward across the chart. As new volatility events occur, older lines are removed based on the "Line count" setting to keep the chart clean.

Settings

General Setting

• ATR MA length: The lookback period used to calculate the Average True Range for volatility measurement.
• ATR multiplier: The factor applied to the ATR; candles with a range larger than this value are considered significant.
• Wick percentage: The minimum percentage of the candle's total range that must be represented by the candle body (Open to Close).

Timeframe Settings (1, 2, and 3)

• Show first/second/third: Toggles the visibility of that specific timeframe's levels.
• Resolution: The timeframe from which the volatility data is pulled (e.g., D, 240, 60).
• Line count: The maximum number of levels to display on the chart for this timeframe.
• Line thickness: Controls the visual weight of the projected lines.
• Line style: Choose between dotted, solid, or dashed lines.
• Color: Customizes the color for levels belonging to that specific timeframe.

FAQ

How do I use the multi-timeframe feature?

You can select different resolutions in the settings (e.g., Setting 1 as "Daily" and Setting 2 as "4 Hour"). The indicator will then fetch volatility data from those timeframes and plot the resulting support and resistance lines on your current chart.

Why are some high-volatility candles not producing lines?

This is likely due to the "Wick percentage" filter. If a candle has very long wicks and a small body, it will be ignored even if it is volatile, as it represents indecision rather than a clear directional breakout.

How can I access Volatility semaphore Support&Resistance multi timeframe?

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