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.
🔶 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.
🔹 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.
🔶 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.
🔶 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 ?