Supports & Resistances [UAlgo]

The "Supports & Resistances " indicator is designed to identify and visualize key support and resistance levels on the price chart. It utilizes the Average True Range (ATR) and Pivot Points to define the boundaries of S & R zones and considers historical price action to assess the strength of these zones.

🔶 How to Obtain Zones

The script continuously analyzes the price action and identifies potential support and resistance zones based on the following criteria:

Zone Creation: For swing highs, a zone is created with the high price at the zone length as the top and the top minus the Average True Range (ATR) as the bottom. Conversely, for swing lows, the zone is created with the low price at the zone length as the bottom and the low plus the ATR as the top.

Zone Strength Calculation: The script iterates through historical bars within the zone and counts how many times the price (low for support, high for resistance) touched but failed to break entirely through the zone. This count is assigned as the zone's "strength".

Zone Display and Removal: It identifying zones by assigning a "strength" value based on how many times the price has approached but failed to break the zone. This helps prioritize stronger potential support/resistance levels. Only zones exceeding the defined "strength threshold" are visually displayed on the chart. Weaker zones or those broken by price are automatically removed.

🔶 Parameters

Zone Length: Traders can adjust S & R detection sensitivity, length to be used to find pivot points.

Strength Threshold: Set the minimum number of times the price needs to touch but fail to break a zone for it to be considered "strong" and displayed.

Visual Settings: Tailor the appearance of the support/resistance zones by defining separate colors and text size for borders, backgrounds, and zone text.

🔶 Disclaimer

The "Supports & Resistances " indicator is provided for educational and informational purposes only.

It should not be considered as financial advice or a recommendation to buy or sell any financial instrument.

The use of this indicator involves inherent risks, and users should employ their own judgment and conduct their own research before making any trading decisions. Past performance is not indicative of future results.

🔷 Related Scripts

Support and Resistance with Signals

ATR Based Support and Resistance Zones

Versionsinformation:

"Invalid number of bars back" Error fixed.