In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
study("[RS]Support and Resistance V0", overlay=true) window1 = input(title='lookback window 1:', type=integer, defval=8) window2 = input(title='lookback window 2:', type=integer, defval=21) top1 = valuewhen(high >= highest(high, window1), high, 0) bot1 = valuewhen(low <= lowest(low, window1), low, 0) top2 = valuewhen(high >= highest(high, window2), high, 0) bot2 = valuewhen(low <= lowest(low, window2), low, 0) t1 = plot(top1, color=top1 != top1 ? na : black) b1 = plot(bot1, color=bot1 != bot1 ? na : black) t2 = plot(top2, color=top2 != top2 ? na : black) b2 = plot(bot2, color=bot2 != bot2 ? na : black) fill(t1, t2, color=orange, transp=80) fill(b1, b2, color=olive, transp=80)
I noticed your "(RS) support and resistance V0" indicator and it's seems to work well.
Any chance to get an extra explanation about it? What is the meaning of the colors? Which lines exactly should I regard?
Thanks in advance,
basicly its nitpicking tops and bottoms, due to its psychological effect this areas become zones of greater attention by traders having higher impact then normally(this said support and resistance of any type is a virtual affector as is impossible to determine how price will trully react to any particular level with 100% certainty due to technical and/or fundamental reasons).
in the indicator the last line is the last valid top this doesnt mean previous untested levels may be discarded.
the colors are a illustration of bearish/bullish pressure.