Support and Resistance Logistic Regression

The Support and Resistance Logistic Regression indicator leverages advanced statistical modeling to identify and project key price levels where the market is likely to find support or resistance. By moving beyond simple historical highs and lows, this tool evaluates the probability of a level's future efficacy based on underlying market conditions at the time of formation.

Usage

The script identifies potential support and resistance zones using pivot points and then applies a logistic regression model to filter for the most significant levels.

• Intelligent Identification: Support and resistance levels are plotted automatically based on statistical significance rather than just price extremes.
• Predictive Probability: Each level can display a probability label (0-100%), representing the model's confidence that the level will act as true support or resistance based on its learned data.
• Retest & Break Labels: The chart displays "R" labels when price successfully tests a level and "B" labels when a level is decisively broken. This helps traders visualize the strength and lifecycle of specific zones.
• Dynamic Visuals: Users can customize the line style, width, and colors to differentiate between support and resistance zones.

Details

The core of the indicator lies in its logistic regression model, which is trained on-the-fly as new data arrives. The process follows these steps:

1. Pivot Detection: It finds significant highs and lows based on the "Pivot Length" setting.
2. Feature Extraction: For every pivot, the script extracts the Relative Strength Index (RSI) and the candle body size. These act as the primary inputs for the statistical model.
3. Model Training: The model analyzes whether past pivots were "respected" (price bounced off them) or "broken." It learns the relationship between the input features and the likelihood of a pivot becoming a durable S/R level.
4. Probability Calculation: When a new pivot forms, the model assigns it a probability score. If this score exceeds the "Probability Threshold," the level is rendered on the chart.

Settings

General Configuration

• Pivot Length: Defines the number of bars used to detect significant highs and lows.
• Target Respects: Specifies how many times a level must be touched and respected by price to be considered "strong" by the model's training logic.
• Probability Threshold: The minimum confidence score (0 to 1) required for a level to be drawn on the chart.
• Hide Far Lines: When enabled, the script removes levels that are significantly far from the current market price to keep the chart clean.

Style

• Show Prediction Labels: Toggles the percentage labels showing the model's confidence for each level.
• Show Retests: Toggles the visibility of "R" (Retest) labels.
• Show Breaks: Toggles the visibility of "B" (Break) labels.
• Line Style & Width: Customizes the visual appearance of the S/R lines.
• Support/Resistance Color: Allows for custom color selection for both types of levels.

FAQ

How do I access Support and Resistance Logistic Regression?

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

What do the "R" and "B" labels mean?

"R" stands for Retest, indicating price touched the level and bounced. "B" stands for Break, indicating price has closed through the level, suggesting it may no longer be active.

Why are some pivots not showing lines?

If a pivot's calculated probability is lower than your "Probability Threshold" setting, the indicator will not plot it. Lowering this threshold will show more levels, while increasing it will show only the highest-probability zones.