CainKellye

Support and Resistance by CainKellye

Check out my automatic support and resistance indicator that uses the EMA of price change * relative volume as the bases of pivot search.
It also tells the strength of the support and resistance lines calculated using a 4 times quicker EMA and using its distance from the slower one.
The strongest plotted line has the maximum opacity and the weakest has the minimum opacity inside the given range.

This calculation results in an organic detection of the support and resistance prices.

  • You can set the distance range in percentage you want to have lines calculated around the current price.
  • You can set the lines gravity distance inside which they are snapped together: the stronger line pulls the weaker to it by using strength weighted average for the new price value.
  • You can increase the minimum opacity value in case you only see few lines (but the maximum is 15)
  • You can change the used price for the lines to Close or High/Low but recommended is to use the average of those two (default)

The distances multiplier helps to get a birds eye view easily when using 4H (or higher) chart and a separate one to use on Daily / Weekly / Monthly for even broader view.
Lines and labels are drawn near the candles so you are still able to zoom in.
Labels are not drawn when their line is barely visible (transparency >= 80)

This indicator has been refined on the 15 minute and 1 hour charts of BTC and other cryptos but it works well in smaller volatility markets as well if the distances are adjusted accordingly.

Release Notes:
  • Changed name to Organic Support and Resistance (OSR)
  • Fixed minimum transparency setting
  • Use EMA instead of SMA for volume average - only minor tweak but provides better values when there are sudden changes in volume
Open-source script

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.

Want to use this script on a chart?

Comments

And if you What a popup alarm when cross up bottom or down top line how to do that mate
Reply
@donuts, I was thinking about that but these lines are approximate (some should be interpreted more like an area around the lines) which makes the alarm less useful in scenarios. So I tend to set my alarms manually for key levels. But @LonesomeTheBlue has a solution for that in his Support Resistance - Dynamic v2 script.
Reply