Automatic SR %B

The Automatic SR %B indicator identifies potential support and resistance levels automatically based on Bollinger Bands %B fluctuations across various timeframes.

Usage

The Usage section focuses on identifying price floors and ceilings derived from overbought and oversold conditions in the %B oscillator. When the %B value crosses below the overbought threshold, a resistance level is plotted based on the previous high. Conversely, when the %B value crosses above the oversold threshold, a support level is plotted based on the previous low.

These levels can be used to:

• Identify potential reversal zones where price has historically exhausted its momentum.
• Establish price targets or stop-loss placement based on structural levels.
• Filter trades by only taking long positions near support or short positions near resistance.

Details

The script utilizes the %B indicator, which measures the relative position of price within Bollinger Bands. A %B value of 1 represents the upper band, while 0 represents the lower band.

When the market enters an overextended state (above the Overbought setting) and subsequently retreats, the script marks the peak of that excursion as a horizontal resistance line. When it dips below the Oversold setting and recovers, the trough is marked as a support line. The script also includes multi-timeframe (MTF) functionality, allowing users to project levels from higher timeframes onto their current chart to identify institutional-grade areas of interest.

Settings

• Bollinger Length: Sets the lookback period used to calculate the Bollinger Bands basis and standard deviation.
• Bollinger Deviation: Determines the multiplier for the standard deviation to set the width of the bands.
• Overbought: The %B threshold above which a resistance level is triggered once price crosses back below it.
• Oversold: The %B threshold below which a support level is triggered once price crosses back above it.
• Use another Timeframe?: Toggles whether the indicator uses the current chart timeframe or a user-defined one.
• Select The Timeframe: Specifies the external timeframe to be used for calculation if the multi-timeframe option is enabled.

FAQ

How do I access Automatic SR %B?

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

Can I use this for scalping?

Yes, by adjusting the Bollinger Length and selecting a lower timeframe, the indicator can highlight short-term intraday support and resistance levels.

Why do the lines stay horizontal?

The lines represent the most recent high or low established during an overbought or oversold event. They remain at that price level until a new event occurs, creating a clear visual reference for historical supply and demand.