Support and Resistance with Signals

The Support and Resistance with Signals indicator identifies key horizontal price levels and generates actionable signals for potential retests and breakouts. It provides a dynamic way to visualize market structure by plotting levels based on pivot points and alerting users when price interacts with these zones.

Usage

The tool automatically plots support (green) and resistance (red) lines on the chart. Traders can use these levels to identify areas where price is likely to stall or reverse.

• Retest Signals (R): Generated when price approaches a support or resistance level within a specific sensitivity range (based on ATR) but does not break it. This indicates a potential rejection or confirmation of the level.
• Breakout Signals (B): Generated when price successfully closes beyond a support or resistance line. This suggests a shift in market momentum and a potential continuation in the direction of the break.

Users can adjust the sensitivity to capture more frequent signals or filter for major level interactions.

Details

The indicator utilizes pivot highs and pivot lows to determine where to draw horizontal lines. Unlike static lines, these levels are updated dynamically. To determine retests and breakouts, the script calculates a "sensitivity zone" using a fraction of the Average True Range (ATR).

• A Retest occurs if price enters the sensitivity zone but remains on the original side of the level.
• A Breakout occurs if the closing price moves across the level. Once a signal is triggered, the specific line is removed from the chart to maintain clarity and focus on active levels.

Settings

S/R Settings

• Pivot Length: Determines the number of bars required to the left and right to confirm a pivot high or low. Higher values result in more significant, longer-term levels.
• Retest - Breakout Sensitivity Length: Sets the ATR period used to calculate the signal range. A higher length smoothens the volatility measurement.
• Maximum Lines: Controls the maximum number of support and resistance lines displayed simultaneously to avoid chart clutter.

Colors

• S & R Colors: Allows customization of the colors for resistance and support lines.
• Line Width: Adjusts the thickness of the plotted horizontal levels.

FAQ

How do I interpret the "R" and "B" labels? The "R" label stands for "Retest," indicating price has tested a level without breaking it. The "B" label stands for "Breakout," indicating price has successfully breached the level.

Can I set alerts for these signals? Yes, the script includes built-in alert conditions for Resistance Retests, Resistance Breakouts, Support Retests, and Support Breakouts.

How can I access Support and Resistance with Signals? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.