Extreme Volume Support Resistance Levels

The Extreme Volume Support Resistance Levels indicator identifies significant support and resistance zones based on spikes in trading volume, allowing traders to pinpoint areas of high institutional activity and potential price reversals.

Usage

The indicator acts as a dynamic mapping tool for key price levels where "extreme" volume has occurred. By detecting bars where volume exceeds a specific threshold (determined by a moving average and multiplier), the script draws boxes around the price action of that bar. These zones serve as:

• Support and Resistance: If price is currently above a historical volume zone, that zone often acts as support; if below, it acts as resistance.
• Entry Points: Traders often look for price to retest these zones before initiating a trade.
• Trend Confirmation: Breaks through these extreme volume zones can signal a strong shift in market sentiment.

The tool also features Multi-Timeframe (MTF) functionality, allowing you to plot zones from a higher timeframe (e.g., 4H) onto your current lower timeframe chart (e.g., 5m) for broader market context.

Details

The script identifies levels by comparing the current volume against an Exponential Moving Average (EMA) of historical volume. When volume exceeds this smoothed average multiplied by a user-defined factor, the script identifies it as an "Extreme Volume" event. It then captures the high, low, open, and close of that specific bar to construct the S/R zones. The zones are visually distinguished to show the upper and lower boundaries of the high-volume activity.

Settings

MTF

• Use MTF?: Enables or disables the Multi-Timeframe feature.
• Timeframe: Selects a standard timeframe for data calculation.
• Use custom timeframe?: Allows the entry of a specific minute-based timeframe not listed in the standard options.
• Custom Timeframe: The specific value (in minutes) for the custom timeframe calculation.

Main Settings

• Lookback: The number of bars the algorithm analyzes to find volume extremes.
• Volume Threshold Period: The period used for the volume EMA to smooth out data.
• Volume Threshold Multiplier: The sensitivity of the detector; a higher multiplier means only the most significant volume spikes will trigger a zone.
• Number of zones to show: Limits the number of historical zones displayed on the chart to maintain clarity.

Dashboard

• Show TF Dashboard?: Toggles a visual table on the chart showing current and MTF settings.
• DB Board Thickness / DB Frame Width: Visual styling options for the dashboard table.

Extra

• Zones' Extend: Controls whether the zones extend to the right, left, or both sides of the chart.
• Use color filling of zones?: Toggles the background fill of the S/R boxes.

FAQ

How do I use the Extreme Volume Support Resistance Levels on my chart?

You can search for the indicator in the TradingView library and apply it to any instrument. Adjust the volume multiplier if you find too many or too few zones appearing for your specific asset.

Can I see zones from a 1-hour chart while trading on a 5-minute chart?

Yes, by enabling the "Use MTF?" option in the settings and selecting "60" or "60m" as the timeframe, the indicator will project higher timeframe volume levels onto your active chart.

Where can I get access to this tool?

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