The indicator titled "Uptrick: Recent Support and Resistance Lines" is a technical analysis tool designed for overlay on price charts. It aims to identify and visualize recent support and resistance levels based on pivot points within a specified range.
Key Features and Functionality:
Pivot Length Parameter:
The indicator allows the user to input a pivot length parameter, which defines the range over which the pivot points (highs and lows) are calculated. By default, this length is set to 50 bars.
Support and Resistance Calculation:
The indicator dynamically calculates the most recent support and resistance levels based on pivot points.
Pivot Highs and Lows:
A pivot high is defined as a price level where a bar's high is higher than the highs of the bars around it for a given number of bars defined by the pivot length.
A pivot low is the opposite, where a bar's low is lower than the lows of the surrounding bars within the same range.
Support Line:
When a new pivot low is identified, this becomes the new recent support level.
The indicator creates a horizontal line at this support level, starting from the bar where it was identified and extending to the current bar. This line is colored green and is drawn with a width of 2 pixels. If a support line already exists, it is deleted and replaced with the new line.
Resistance Line:
Similarly, when a new pivot high is detected, it updates the recent resistance level.
A horizontal line is drawn at this resistance level, starting from the bar where it was identified and extending to the current bar. This line is colored red and also drawn with a width of 2 pixels. As with the support line, any existing resistance line is deleted and replaced with the new one.
Visual Representation:
The support and resistance lines extend to the right, providing a clear visual guide on the chart. This helps traders identify key levels where price has previously found support or encountered resistance, which can be critical for making trading decisions.
Practical Application:
Trading Decisions:
Traders can use the visual cues from the support and resistance lines to make informed trading decisions. For instance, they might place buy orders near support levels and sell orders near resistance levels.
The dynamic nature of these lines helps in adapting to the most recent market conditions, ensuring that the levels are relevant to the current price action.
Trend Analysis:
The indicator can assist in analyzing the overall trend. In an uptrend, the support levels may progressively rise, while in a downtrend, resistance levels may drop.
This indicator is particularly useful for traders who rely on visual support and resistance levels to guide their trading strategies, providing a clear and automatic way to track these critical levels on their charts.
Key Features and Functionality:
Pivot Length Parameter:
The indicator allows the user to input a pivot length parameter, which defines the range over which the pivot points (highs and lows) are calculated. By default, this length is set to 50 bars.
Support and Resistance Calculation:
The indicator dynamically calculates the most recent support and resistance levels based on pivot points.
Pivot Highs and Lows:
A pivot high is defined as a price level where a bar's high is higher than the highs of the bars around it for a given number of bars defined by the pivot length.
A pivot low is the opposite, where a bar's low is lower than the lows of the surrounding bars within the same range.
Support Line:
When a new pivot low is identified, this becomes the new recent support level.
The indicator creates a horizontal line at this support level, starting from the bar where it was identified and extending to the current bar. This line is colored green and is drawn with a width of 2 pixels. If a support line already exists, it is deleted and replaced with the new line.
Resistance Line:
Similarly, when a new pivot high is detected, it updates the recent resistance level.
A horizontal line is drawn at this resistance level, starting from the bar where it was identified and extending to the current bar. This line is colored red and also drawn with a width of 2 pixels. As with the support line, any existing resistance line is deleted and replaced with the new one.
Visual Representation:
The support and resistance lines extend to the right, providing a clear visual guide on the chart. This helps traders identify key levels where price has previously found support or encountered resistance, which can be critical for making trading decisions.
Practical Application:
Trading Decisions:
Traders can use the visual cues from the support and resistance lines to make informed trading decisions. For instance, they might place buy orders near support levels and sell orders near resistance levels.
The dynamic nature of these lines helps in adapting to the most recent market conditions, ensuring that the levels are relevant to the current price action.
Trend Analysis:
The indicator can assist in analyzing the overall trend. In an uptrend, the support levels may progressively rise, while in a downtrend, resistance levels may drop.
This indicator is particularly useful for traders who rely on visual support and resistance levels to guide their trading strategies, providing a clear and automatic way to track these critical levels on their charts.