Support Resistance Classification [LuxAlgo]

6 Jun 2023

The Support Resistance Classification indicator shows SR levels from a user-defined range using higher time-frame data (HTF). Levels are classified 1 through 10 based on their strength, with lower values indicating stronger support/resistance levels.

This indicator doesn't use visible range functionality, in contrast to our Support Resistance Classification (VR) [LuxAlgo] indicator, it uses a set lookback period to find support/resistance levels.

Since both techniques cannot be used together in 1 script, we developed a separate, NON-VR version.

🔶 USAGE



Certain indicators on higher timeframes can provide longer-term support/resistance levels on lower timeframes. Users can use the provided levels and use them as references for future support/resistance levels.



The classification algorithm measures the strength of a support/resistance level using the set range and is in a range of 1 to 10, with higher values indicating a weaker support/resistance.



Supports/resistances highlighted by the indicator can be used for future applications by marking them on the chart (quickly done with alt + h).

🔶 DETAILS

All calculations are based on what is seen in the last <Lookback> amount of bars, which is the period between the blue vertical line and the last candle:







Since only Swings which are not broken are included, every break would exclude that swing. Therefore, even when 'value' is chosen at Settings ('Value'), breaks are always calculated on the entire line.

🔶 SETTINGS

Lookback: Amount of bars from current bar to x bars back, this is the period where support/resistance levels are calculated.

Fade: After x breaks the line becomes invisible

Value:

• value:
      • SMA, upper/lower: the breaks are triggered on the moving average itself
      • Fibonacci Pivot Point levels, Previous High, Previous Low: only last HTF values can be used for breaks
      • Swings (see SWING SETTINGS)
  
  
• line:
      • SMA, upper/lower: the breaks are triggered on the entire line, based on its latest value
      • Fibonacci Pivot Point Levels, Previous High, Previous Low: breaks are triggered on the entire line, based on its latest value
      • Swings (see SWING SETTINGS)
  

🔹 Swing Settings

Swings are always calculated at the current timeframe, setting an HTF is not applicable to Swings.

• Left/Right: for Swing calculation (pivothigh, pivotlow)
  
• Show: enables you to see the pivot points
  

🔹 Set

• N°: The concerning number
  
• TYPE:
      • SMA (Simple Moving Average)
      • Previous High/Low
      • Upper/Lower (Bollinger Bands)
      • Pivot Point levels: "Fibonacci"
  
• LENGTH: sets the 'Number of bars', needed for calculations (applicable for SMA, upper/lower)
  
• MULT: sets the 'Standard deviation factor' (only applicable for upper/lower - BB)
  
• HTF: sets 'Higher Time Frame' (applicable for SMA, upper/lower, Previous High/Low, Fibonacci)
  

🔹 Show Values

You can make up to 5 values visible (if you want to check/verify), except for Swings (see SWING SETTINGS)
To do so, enable (A -> E), and choose the N° you want to see.

This also is a useful tool if you're not sure which value you want to set.