Support and Resistance [CryptoSea]

The Support and Resistance Indicator is a powerful tool developed by CryptoSea for traders seeking to identify key market levels with precision. This script leverages advanced pivot and volume analysis to highlight support and resistance zones on the price chart.

Key Features

• Multi-Source Pivot Analysis: Choose between wicks or body prices for calculating pivot points, providing flexibility in market analysis.
  
• Volume Spike Detection: Automatically identifies volume spikes using a customizable threshold multiplier, enhancing the accuracy of support and resistance levels.
  
• Dynamic Box Display: Configurable options for extending and graying out boxes based on price interaction, ensuring a clear visual representation of active and invalidated zones.
  

In the example below, we see a resistance box formed based on wick highs and a volume spike. The box extends to where we see price rejecting from it. In the settings you can change this so the box will stop if price touches it if you prefer.



How it Works

• Pivot Point Calculation: The script determines pivot highs and lows using either wicks or body prices over a specified term (Short, Medium, Long), corresponding to 5, 15, or 30 bars.
  
• Volume Analysis: Calculates average volume over twice the pivot length and identifies volume spikes exceeding the user-defined threshold, crucial for confirming support and resistance levels.
  
• Box Management: Maintains arrays of support and resistance boxes, limiting the number based on user settings (All, Recent Few, Recent Several).
  

Settings Explained

• Source: Choose between 'Wicks' or 'Bodies' to determine whether pivot points are calculated using candle wicks or body prices.
  
• Pivot Term: Select 'Short' (5 bars), 'Medium' (15 bars), or 'Long' (30 bars) to adjust the distance for pivot calculation. Longer terms take more bars to confirm support/resistance.
  
• Volume Threshold (multiplier): Set a multiplier of average volume to detect volume spikes, essential for validating support/resistance levels.
  
• Extend Until Price Hits: Enable this to extend support/resistance boxes until the price touches them, providing dynamic levels.
  
• Gray Out Boxes Once Hit: Enable this to gray out the boxes once the price interacts with them, indicating that they are no longer active.
  
• Max Boxes Displayed: Choose 'All', 'Recent Few' (up to 3 boxes each for bull and bear), or 'Recent Several' (up to 10 boxes each for bull and bear) to control the number of visible boxes.
  
• Invalidate Condition: Select 'Touch' to invalidate a box when the price touches it or 'Through' to invalidate when the price passes entirely through the box.
  
• Candle Colors: Option to color candles based on neutral, bullish, or bearish conditions for easier visual analysis.
  

Application

• Strategic Planning: Assists traders in pinpointing potential entry and exit points by marking significant support and resistance zones.
  
• Trend Confirmation: Validates trend strength and potential reversals with volume-based analysis of support and resistance levels.
  
• Customizable Settings: Tailors analysis to various trading strategies with extensive input settings for pivot source, term, volume threshold, and display preferences.
  

The Support and Resistance Indicator by [CryptoSea] is an essential addition to any trader’s toolkit, offering robust and customizable market level analysis for improved trading decisions.