- This script automatically detects horizontal support / resistance levels based on user-programmable criteria.
- For example, you can detect boundaries with >3 touches within 200 days, allowing a tolerance of 1/4*ATR.
- "Touches" are defined from pivots on the chart. The best way to search for larger/smaller patterns is to increase/decrease the pivot size.*
- Future versions will allow "exceptions (i.e. keep drawing the horizontal line even if it is breached once or twice).
*TradingView's Pine script defines a Pivot as the highest point in a group. So, entering "2" means that a day's high needs to be above 2 days before and after (xxYxx) to be considered a high pivot.
This script can be an aid in drawing multiple patterns with horizontal boundaries (rectangles, triangles, head and shoulders, cup & handles, VCPs). I have intentionally avoided trying to code detection of the "other side" of these patterns, as that is where the craft of charting becomes an art.