Support and Resistance Indicator [CTH]

Support and Resistance Indicator: User Guide

Our Support and Resistance Indicator is a powerful tool designed to help traders identify key price levels where market movements are likely to reverse or stall. By highlighting unbroken support and resistance levels, it simplifies price action analysis and provides actionable insights for both new and experienced traders.

How the Indicator Works

Identifying Support and Resistance Levels

The indicator identifies pivot highs and lows to plot key support (green zones) and resistance (red zones) levels on the chart. It focuses on unmitigated levels, meaning that once a level is breached (mitigated), it is automatically removed from the chart to ensure clarity.


Price Reaction to Levels

Support (Green Zones): When the price approaches a support level, it suggests a potential upward bounce.

Resistance (Red Zones): When the price approaches a resistance level, it indicates a potential downward rejection.


Dynamic Updates

As new price action unfolds, the indicator updates to reflect the most relevant unbroken levels, helping traders focus on actionable areas of interest.

Key Features

Inputs for Customization

Sensitivity

Adjust the sensitivity to control how the indicator identifies swing lengths.
The value ranges from 0 (least sensitive) to 100 (most sensitive).
Default Setting: 50, which works effectively across most time frames.


Historical Zones to Show

Define how many previous support and resistance levels you wish to display on your chart.
This feature helps you focus only on levels within your desired price range, decluttering the chart for better analysis.



Visual Adjustments

Color Customization

Customize the colors of support and resistance zones to suit your charting preferences.
Default settings: Green for support, Red for resistance.


Opacity Control

Adjust the opacity of the zones to make them more or less prominent based on your visual preference.

Practical Tips

Fine-tune Sensitivity based on your trading style and the time frame you are analyzing. For shorter time frames, slightly higher sensitivity may help identify closer levels.
Use the Historical Zones setting to tailor the chart view to your trading horizon. Fewer levels may suit scalpers, while more levels might be helpful for swing traders.
Combine the indicator with other tools or strategies for enhanced decision-making. For instance, use it alongside volume analysis or candlestick patterns to confirm potential reversals.