funwiththinkscript – The Sorcerer’s Resistance
This indicator will auto-magically identify the next five potential support lines below, and the next five potential resistance lines above, the close.
This indicator will automatically identify and plot the next five areas of potential support and potential resistance that are closest to the current close price. “Closest” is determined based on price level rather than time. That is to say, the closest price level for potential support may be based on a price reversal that occurred some time before the most recent reversal.
The user may elect to have the areas of potential support or resistance determined from either the candle wicks or the candle bodies.
The user may also adjust wavelength. The wavelength determines the distance between reversal tops and reversal bottoms. For example, a wavelength of 20 would mean that a high must be higher than the 20 candles before and the 20 candles after it in order to be considered a reversal top. So, a shorter wavelength will identify potential support and potential resistance lines based on smaller price reversals. Likewise, a longer wavelength will identify those areas based on larger price reversals.
The user may easily adjust colors of the lines from within the “Globals” section of the study settings panel.
This indicator will work on any time-frame and with any instrument.