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[SpaghettiForex] LH - Level Heatmap

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LH — Level Heatmap is a context tool that builds a dynamic heatmap of price zones (support/resistance areas) and assigns each zone a strength score (0–100) based on how price interacts with it over time.

LH does not predict the market and it is not a “magic levels” script.
Its goal is to help you prioritise which zones are worth paying attention to, using simple, transparent rules.

What it shows:
- A set of horizontal zones (boxes) derived from objective sources (pivots, previous day levels, optional manual levels).
- A strength score for each zone (visualised via colour/opacity).
- Optional zone labels (“LH xx”) and alerts for touches and confirmed reactions.

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Screenshots (examples):

Screenshot 1 — Heatmap overview (multiple zones)

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A full overview showing how LH builds and extends zones to the right.
Stronger zones appear with clearer colouring/visibility, weaker zones fade.

Screenshot 2 — Strong zone touch

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Example of price entering a strong zone (high strength score).
LH highlights nearby zones and displays a strength score (0–100). Higher scores indicate zones with more meaningful interactions over time.
Useful to illustrate how repeated interactions can increase the zone’s relevance over time.

Screenshot 3 — Reaction confirmation (strong zone)

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Example of a confirmed reaction after a touch (price moves away by a minimum ATR distance within a limited number of bars).
After a zone touch, LH can confirm a reaction when price moves away by a minimum ATR distance within a limited number of bars.
This is a context metric, not a trade entry signal.

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HOW ZONES ARE CREATED

LH can build zones from:
- Pivot High / Pivot Low (swing points detected using left/right pivot settings)
- Previous Day High/Low (optional)
- Manual levels (CSV): comma-separated price levels (optional)

Each level becomes a zone whose thickness is based on ATR:
- Fixed at creation: the zone thickness is locked when created
- Dynamic with ATR: thickness adapts as ATR changes

Close levels can be merged to avoid clutter using a minimum separation rule (ATR-based).

HOW STRENGTH IS CALCULATED (0–100)

Each zone strength is a weighted mix of three components:
1. Touches - How many times price enters the zone (with an optional cooldown to avoid overcounting).
2. Reactions - A “reaction” is counted when, after a touch, price moves away from the touch price by at least a defined ATR distance within a fixed number of bars.
3. Cleanliness (touch quality) - A simple proxy that rewards cleaner touches (based on wick/body dominance), to reduce noise from messy interactions.

All components are normalised and combined into a final strength score (0–100). The colour/opacity of each zone reflects this score.

Display modes:
- All Zones: shows every stored zone
- Only Nearest Zones: shows only the N closest zones to current price (useful to keep charts clean).

ALERTS

LH includes optional alerts (bar-close confirmed) for:
- Price entering a strong zone.
- A strong-zone reaction being confirmed.
- Price entering any visible zone (optional).

Alerts include zone strength and centre level via hidden plot values.

Important note:
LH is a context and prioritisation tool. It does not provide financial advice or performance guarantees.
Zones are derived from pivots and session levels, so they reflect structure after it forms (pivot logic inherently requires confirmation). Always use LH alongside your broader process and risk management.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.