Support Resistance and Fracture

The Support Resistance and Fracture indicator identifies key market pivot points and visualizes the relationship between local highs and lows using diagonal slope lines to mark potential market "fractures." This tool helps traders visualize the interaction between support and resistance levels across multiple lookback windows simultaneously.

Usage

The indicator can be used to identify trend direction and potential reversal zones based on the orientation of the diagonal "fracture" lines.

• Trend Identification: When the diagonal lines are colored with the "Rising Color," it indicates a specific relationship between the highest high and lowest low within a given step window, often suggesting bullish pressure or a recovery from a low. Conversely, the "Falling Color" suggests bearish pressure.
• Level Visualization: The tool draws horizontal lines extending from detected pivots. These act as static support and resistance levels that the market may react to in the future.
• Fracture Points: The diagonal lines connect the price level of a high to the time of a low (and vice versa), creating an inverted slope that highlights the structural "fracture" between peaks and troughs.

Details

The script operates by scanning 10 distinct lookback windows, each an incremental multiple of the user-defined "Step" input. For each window, it identifies the highest high and the lowest low.

The "Fracture" concept is implemented by drawing a line from the coordinate (Time of High, Price of Low) to (Time of Low, Price of High). This inversion of price and time coordinates for the start and end points creates a unique visual representation of the distance and slope between local extremes. The horizontal lines provide a more traditional view of where those specific price peaks and valleys currently sit relative to the current bar.

Settings

• Step: Determines the base lookback period. The indicator calculates 10 different levels using multiples of this value (e.g., if Step is 10, it looks at periods of 10, 20, 30... 100).
• Rising Color: The color assigned to the diagonal fracture line when the low precedes the high within the lookback window.
• Falling Color: The color assigned to the diagonal fracture line when the high precedes the low within the lookback window.

FAQ

How do I interpret the diagonal lines?

The diagonal lines represent the "fracture" or the slope between the extreme points of a specific lookback period. Their color indicates which extreme (high or low) occurred first, helping you understand the recent sequence of price action.

What do the horizontal lines represent?

The horizontal lines mark the exact price levels of the highs and lows detected within the various step windows, serving as dynamic support and resistance zones.

How can I access Support Resistance and Fracture?

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