Support And Resistance
Indicator For Tradingview
PREMIUM INDICATOR
This is a support and resistance indicator that is based on higher time frame candle levels. These higher time frame candles act as support and resistance levels, so look for reversals and continuations off of these levels. It includes candle levels for these time frames: 1 hour, 4 hour, 1 day, 1 week, 1 month, 1 quarter and 1 year. The indicator also includes a trend candle coloring feature, trend strength scoring table, stop loss feature, line identification labels, alerts for trend changes and full customization of all options.
Higher Time Frame Candle Levels
The indicator shows the candles of each time frame on the chart so you can easily see what is going on with the higher time frame candles and read the price action from your lower time frame charts, making the markets easier to understand and easier to tell what the short term, mid term and long term trends are. Each candle level will paint red if it was a down candle or green if it was an up candle, except the midlines, those are a different color for easy differentiation. The line colors can be customized to your preferences in the settings and you can also toggle the candle body coloring on or off, as well as change the color of the candle body background.
Each time frame can be adjusted to your preferences, allowing you to turn all of the levels on or off, or use just the midlines. You can also adjust how many previous candles show up on your chart so you can back test it and see for yourself how accurate these levels are. When adjusting the number of candles, make sure you don’t go over 500 total lines or some will disappear because there is a limit to 500 lines. Each candle has 4 lines, open, close, high, low and 1 more line if the midlines are on. The default settings keep you under 500 total, so just be aware of that limitation when adjusting those numbers.
You can also extend the levels right on any time frame from the daily levels and above. This is useful when price is breaking above or below all levels and you need to know if there are any other previous candle levels in the way as price moves away from the most recent higher time frame candles.
To understand the intraday trend of each higher time frame, look to see where price is at according to each higher time frame candle. If the price is above the midline of the candle, it is bullish. If the price is above the candle body it is more bullish. If the price is above the high, it is very bullish. If the price is below the midline of the candle, it is bearish. If the price is below the candle body it is more bearish. If the price is below the low, it is very bearish. Make sure you back test this and go through lots of historical data to get a feel for how price reacts to these levels and establishes the trend.
Since users are limited to a certain amount of historical bars based on which Tradingview plan you have, when the current date is late in the month or year, you won’t be able to get the monthly, quarterly or yearly candle levels, especially on the 1-5 minute time frames. So, in order to get those levels to show on your chart we added an option on the weekly, monthly, quarterly and yearly candles so they will show up on a lower time frame chart. You will need to adjust this accordingly to make sure you get those long term candle levels, so just choose the highest timeframe you can where the levels show up on your chart. For the yearly levels, try setting the Start time frame to monthly and if the current date is late in the month and the levels don’t show, then change it to weekly. Do the same process for quarterly, monthly and weekly levels if any of those levels are not showing up for you. The default settings are made for the 5 minute chart where you have 20,000 historical bars of data to work with. If you have less historical bars to work with, change these settings to lower time frames. If you are on higher time frame charts, put the Start settings back to the same time frame as the candle for accurate start and end points on your chart.
Trend Candle Coloring
The indicator includes a feature that paints the candles based on whether the current time frame candles are above or below the midline, candle body or high & low of a higher time frame candle of your choice. This helps you see the overall trend of the higher timeframe so you can trade with the trend.
The candle coloring will have an up color, down color and neutral color which can all be customized to suit your preferences. If the current time frame candle close is above the setting you choose, it will show the up color. If the current time frame candle close is below the setting you choose, it will show the down color. If the current time frame candle close is equal to or in the middle of the setting you chose, it will show the neutral color. So, for example if you set it to candle body, then it will show the up color if the current candle is above the top of the candle body, down color if it is below the bottom of the candle body and neutral color if it is inside the candle body. This helps you wait for price action to move beyond the inside of the previous higher time frame candle before taking a position when price is breaking out of that previous candle so you can trade the momentum of that move. The candle coloring is fully customizable, but make sure to turn off your candle coloring on other indicators and your chart settings for it to show up properly.
Trend Strength Scoring Table
The trend strength scoring table displays a table at the bottom of the screen(table position is customizable), showing a score for the trend strength of each higher time frame. If the current candle close is above the midline, its strength is 1. If the current candle close is above the midline, but below the top of the candle body, its strength is 2. If the current candle close is above the high, its strength is 3. The same goes for below the midline, bottom of the candle body and below the low, but the scores would be negative 1, 2 or 3 instead.
This trend strength table allows you to quickly identify the trend on each higher time frame so you can wait until the trend is the same across all time frames before placing a trade in the direction of the trend. It also shows a total score on the far right side that adds all of the current trend scores together to give you a total strength score. Try to only trade when that number is very high compared to how many time frames you have turned on. Each time frame can have up to a maximum score of 3 if bullish and -3 if bearish. Each time frame in the table can be turned on or off to suit your preferences.
Stop Loss Feature
There is also a stop loss feature that you can set to whatever time frame you choose and whatever direction you chose, such as long or short. It will follow the most recent higher time frame candle’s trend using one of the following settings: candle body, high & low or midline. Once a new higher time frame candle is created, the stop loss will update to the most recent candle’s levels so you can use these levels as a trailing stop loss to maximize your wins. If you have it set to use the candle body and it is set to long mode, then the stop loss will use the previous higher time frame candle’s lowest candle body level. So if it was an up candle previously, it will use the open. If it was a down candle previously, it will use the close. The opposite is true for short positions. The stop loss will start working once you turn it on in the settings and will update automatically as new higher time frame candles are formed. It also shows a line of where the stop loss was previously since it was turned on.
Candle Level Identification Labels
There are labels for each level starting with the 4 hour time frame and above so you can easily tell what level of each candle you are looking at, even if the rest of the candle is not showing within the chart pane. You can customize the label coloring for up candles and down candles and midlines as well as adjust the number of bars that the labels are offset from the current bar so they are visible on your chart without overlapping the current price action or other indicator labels. Labels for each time frame can be turned on or off as needed. The 1 hour labels were not included because it clogs up the chart, but it has labels for all time frames from the 4 hour candles and up. If the labels do not show up and lines are extended too far right, just zoom out on your chart and then zoom back in and they will correct themselves.
Alerts For Trend Changes
The indicator includes alerts for when the trend has changed to the opposite direction. This feature is based on your settings for the Trend Candle Coloring. Whatever settings you have the trend candle coloring set to, will be used to set up your alerts. The Trend Candle Coloring setting must be turned on as well when creating your alerts for it to work properly. Make sure to back test your settings and then create your alerts. The alerts allow you to be notified when the trend direction has flipped to bullish or when it has flipped to bearish. Make sure to set your alerts to once per bar close to avoid alerts when a bar has not yet been completed.