Diagonal Support and Resistance Trend Lines

The Diagonal Support and Resistance Trend Lines indicator automatically identifies and projects diagonal price structures to help traders visualize potential breakout and breakdown levels. By connecting historical pivot points, the tool provides a dynamic view of market trend lines that adjust as new price action unfolds.

Usage

The Diagonal Support and Resistance Trend Lines tool is used to identify key areas of market interest where price may react or reverse.

• Resistance Identification: The tool identifies pivot highs and connects them to form descending or ascending resistance lines, typically displayed as red dashed lines. A close above these lines may signal a bullish breakout.
• Support Identification: The tool identifies pivot lows and connects them to form support lines, typically displayed as green dashed lines. A close below these lines may signal a bearish breakdown.
• Sensitivity Tuning: Users can modify the Pivot Lookback to change how the indicator perceives "significant" highs and lows. A higher lookback will result in more major trend lines, while a lower lookback will capture more local price fluctuations.
• Trend Analysis: The angle and convergence of these lines can assist in identifying patterns such as wedges, channels, or triangles.

Details

The indicator utilizes the ta.pivothigh and ta.pivotlow functions to detect structural turning points in the market. Once these points are identified, the script stores them in arrays and calculates the slope between consecutive pivots to project the trend line forward into future price bars.

The script includes logic to detect when the current closing price crosses these projected lines, which triggers internal breakout/breakdown flags. To maintain chart cleanliness and performance, the tool automatically manages a set number of active lines, deleting older projections as new pivots are formed.

Settings

• Pivot Lookback: Determines the number of bars required on either side of a high or low to confirm it as a pivot point.
• Max Trend Lines: Specifies the maximum number of support and resistance lines to be drawn on the chart simultaneously.
• Line Style: Allows the user to choose between Solid, Dotted, or Dashed appearances for the trend lines.
• Resistance Line Color: Sets the color for lines connecting pivot highs.
• Support Line Color: Sets the color for lines connecting pivot lows.
• Line Width: Adjusts the thickness of the plotted trend lines.

FAQ

How do I access Diagonal Support and Resistance Trend Lines?

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 automated alerts?

Yes, the script is optimized for alerts and will trigger a notification when the price closes above a resistance line or below a support line.

Why do some lines disappear?

The indicator is designed to show the most recent relevant structures. You can increase the "Max Trend Lines" setting if you wish to see more historical projections on your chart.