Classic Chartism-Market Structure- Support.Resistance

The Classic Chartism-Market Structure- Support.Resistance tool identifies key market structure pivot points and support/resistance levels to assist traders in price action analysis without the lag of traditional oscillators.

Usage

The indicator can be used to objectively identify the current trend and potential reversal points by labeling market structure. Traders can use the labels to confirm the market state:

• HH (Higher High): Indicates bullish momentum and trend continuation.
• HL (Higher Low): Suggests a potential entry point during a bullish trend pullback.
• LH (Lower High): Indicates a potential exhaustion of bullish momentum or a bearish trend continuation.
• LL (Lower Low): Confirms bearish momentum and downward trend strength.

The horizontal dashed lines act as static Support and Resistance levels derived from these confirmed pivots. These levels can be used to set price targets or define stop-loss areas based on historical supply and demand zones.

Details

The script utilizes confirmed pivot highs and pivot lows to map out the market structure. A pivot is only confirmed after a specific number of bars have passed to the right of the high/low, ensuring the level is significant. This method prevents repainting once the confirmation criteria (Right Bars) are met. By focusing exclusively on price action, the tool provides a "naked" chart perspective favored by classical chartists.

Settings

• Left Bars: The number of bars to the left of a candle required to evaluate it as a potential pivot.
• Right Bars: The number of bars to the right of a candle required to confirm it as a pivot. Increasing this value makes the levels more significant but increases the confirmation lag.

FAQ

How do I use the support and resistance lines?

The dashed lines represent significant historical price levels. Green lines represent support zones derived from pivot lows, while red lines represent resistance zones derived from pivot highs.

Does this indicator repaint?

No, the indicator does not repaint. Labels and lines are only plotted once the "Right Bars" confirmation period has passed, ensuring the signals remain fixed on the chart.

How can I access Classic Chartism-Market Structure- Support.Resistance?

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