The Support & Resistance Dynamic indicator aims to return real-time predictive support and resistance zones that are relevant to a detected trend. This makes this indicator similar to our previously published Predictive Ranges indicator.
Users can additionally extend the most recent historical support and resistance zones.
πΆ USAGE
Hypothetical resistance levels in an up-trend or supports in a down-trend would tend to be broken more easily, as such the indicator primary objective is to return reliable real-time support and resistance levels by taking this into account.
When the market is up-trending the indicator will only return support zones, while a down-trending market will cause the indicator to only return resistance zones.
If the price significantly breaks a support/resistance, rendering it unreliable, it can be a sign of a potential reversal.
Users can return support/resistance levels/zones for shorter-term trends by reducing the Multiplicative Factor setting.
πΉ Extension
Users can extend past estimated support/resistance levels, the amount of extended levels is determined by the users. Certain levels can stay relevant in the future, and can also aid in measuring the significance of a breakout, with further past levels being reached being indicative of more significant trends.
πΆ DETAILS
To determine if the price is up-trending or down-trending in order to show either support or resistance, the same method used in the predictive ranges script is used. A central tendency is estimated, if price significantly deviates from it upward an uptrend is detected, else a significant deviation downward would indicate a downtrend.
The central tendency estimate is used for the construction of the support and resistance levels.
πΆ SETTINGS
Multiplicative Factor: Determines the frequency at which new supports/resistances are returned, with lower values returning more frequent levels/zones.
ATR Length: ATR averaging length used as deviation threshold for the central tendency estimate.
Extend Last: Determines the amount of most recent historical supports/resistances to extend to the latest bar.
hi why dont u use volume as a key for support and resistance ?
tradersayeed
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@anhswf, can you explain me this with an example! how you will use volume to find support and resistance!
PoliSciStocks
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I like this one after making for fine tunes on variable. It doesn't tend to show as much support as resistance though. It can stack 4 resistance zones with no support areas most of the time.
ElMancho
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Thank you for the great work
Pratik_4Clover
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thanks!
ACryptoMore
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Hello, thank you very much for the indicator! I would like to know how I can create an alert for when a new resistance or support appears. For example, I would like to know when the price is above a support or below a resistance.
why dont u use volume as a key for support and resistance ?