Pivot-Based Support and Resistance Zones with Break and Candle Signals
Summary
This indicator builds support and resistance zones from swing highs and lows. Users control how many bars are checked on each side of a pivot, how many pivots to track, and zone width using an average true range multiplier, with a price-percentage cap. The pivot source can use Heikin-Ashi values, candle bodies, or full highs and lows. Recurring overlapping zones can be aligned, and zones may optionally extend forward.
Additional options mark breaks above resistance or below support, breaks through all tracked pivots, false breaks, and candles pushing away from zones. The script also detects several candlestick patterns near levels and can issue alerts. The document explains configurable mechanics and signal meanings, but reports no trading results or validation. Pivot confirmation depends on bars to the right, so a level is only identifiable after subsequent price action; signals and settings should be assessed with that timing in mind.
Key ideas
- Swing pivots form the basis for support and resistance zones.
- ATR and a price-percentage cap help control zone width across instruments and timeframes.
- Overlapping recurring zones can be aligned to emphasize areas revisited by price.
- Optional signals cover breakouts, breakdowns, false breaks, zone reactions, and candle patterns.
- The document provides no performance evidence, and right-side pivot bars delay confirmation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.