The Support and Resistance Signals MTF [LuxAlgo] indicator aims to identify undoubtedly one of the key concepts of technical analysis Support and Resistance Levels and more importantly, the script aims to capture and highlight major price action movements, such as Breakouts, Tests of the Zones, Retests of the Zones, and Rejections.

The script supports Multi-TimeFrame (MTF) functionality allowing users to analyze and observe the Support and Resistance Levels/Zones and their associated Signals from a higher timeframe perspective.

This script is an extended version of our previously published Support-and-Resistance-Levels-with-Breaks script from 2020.

Identification of key support and resistance levels/zones is an essential ingredient to successful technical analysis.

USAGE

Support and resistance are key concepts that help traders understand, analyze and act on chart patterns in the financial markets. Support describes a price level where a downtrend pauses due to demand for an asset increasing, while resistance refers to a level where an uptrend reverses as a sell-off happens.

The creation of support and resistance levels comes as a result of an initial imbalance of supply/demand, which forms what we know as a swing high or swing low. This script starts its processing using the swing highs/lows. Swing Highs/Lows are levels that many of the market participants use as a historical reference to place their trading orders (buy, sell, stop loss), as a result, those price levels potentially become and serve as key support and resistance levels.

One of the important features of the script is the signals it provides. The script follows the major price movements and highlights them on the chart.

Breakouts (non-repaint)

A breakout is a price moving outside a defined support or resistance level, the significance of the breakout can be measured by examining the volume. This script is not filtering them based on volume but provides volume information for the bar where the breakout takes place.

Retests

Retest is a case where the price action breaches a zone and then revisits the level breached.

Tests

Test is a case where the price action touches the support or resistance zones.

Rejections

Rejections are pin bar patterns with high trading volume.

Finally, Multi TimeFrame (MTF) functionality allows users to analyze and observe the Support and Resistance Levels/Zones and their associated Signals from a higher timeframe perspective.

SETTINGS

The script takes into account user-defined parameters to detect and highlight the zones, levels, and signals.

Support & Resistance Settings

• Detection Timeframe: Set the indicator resolution, the users may examine higher timeframe detection on their chart timeframe.
• Detection Length: Swing levels detection length
• Check Previous Historical S&R Level: enables the script to check the previous historical levels.

Signals

• Breakouts: Toggles the visibility of the Breakouts, enables customization of the color and the size of the visuals
• Tests: Toggles the visibility of the Tests, enables customization of the color and the size of the visuals
• Retests: Toggles the visibility of the Retests, enables customization of the color and the size of the visuals
• Rejections: Toggles the visibility of the Rejections, enables customization of the color and the size of the visuals

Others

• Sentiment Profile: Toggles the visibility of the Sentiment Profiles
• Bullish Nodes: Color option for Bullish Nodes
• Bearish Nodes: Color option for Bearish Nodes

RELATED SCRIPTS

Support-and-Resistance-Levels-with-Breaks Buyside-Sellside-Liquidity Liquidity-Levels-Voids