Detecting Support and Resistance from Repeated Price Zones
Summary
This indicator searches price history for clusters of candles occupying a similar price range and marks qualifying levels as support or resistance. It first excludes bars it considers unusually large, then looks back for other bars in the same zone. When enough matches meet the configured threshold, it draws a horizontal line that remains until another zone is identified.
The two main controls set the lookback span and the percentage of candles that must match for a zone to qualify. The description presents this as usable across markets and timeframes, but gives no precise definition of an unusually large bar or how the matching price range is calculated. It also provides no performance tests or guidance for trading signals. The lines can help visualize repeated price areas, but the notes do not establish whether those levels predict future price behavior.
Key ideas
- The indicator searches past candles for repeated activity in a shared price zone.
- Bars classified as abnormally large are skipped during its search.
- A lookback setting controls how much history is examined.
- A match percentage sets how many candles must qualify before a level is drawn.
- A detected line remains visible until the indicator finds another zone.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.