Support and Resistance with High Volume Candles + Touch Count

31 Mar

# **Indicator Notes: S& R with High Volume Candles + Touch Count - Mehta-**

## **Overview**
This indicator identifies potential **support** and **resistance** levels based on **high-volume candles** and tracks the number of times price touches these levels within a user-defined lookback period.

### **Key Features:**
1. **High-Volume Candle Detection:**
- **Support** is identified from high-volume **green (bullish)** candles.
- **Resistance** is identified from high-volume **red (bearish)** candles.

2. **Touch Count:**
- Tracks how many times price revisits a support/resistance level within a specified lookback period.
- Helps assess the strength of a level (more touches may indicate stronger significance).

3. **Customizable Parameters:**
- **Period:** Adjusts the lookback for average volume calculation.
- **Volume Multiplier:** Sets the threshold for high-volume detection.
- **Touch Count Lookback:** Defines how many bars back to count touches.
- **Line Colors & Label Position:** Customize visual appearance.

## **How to Use**
- **Support/Resistance Breakouts:** Watch for price closing beyond these levels with confirmation.
- **Bounce Trading:** Look for reactions (bounces/rejections) near identified levels.
- **Touch Count Insight:** Higher touch counts may indicate stronger levels.

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## **Disclaimer**

### **Risk Warning:**
Trading involves substantial risk and may not be suitable for all investors. The use of this indicator does not guarantee profits or eliminate risks associated with trading.

### **Limitations:**
1. **Historical Performance ≠ Future Results:** Past price behavior does not ensure future outcomes.
2. **False Signals:** The indicator may generate levels that do not hold.
3. **Market Conditions:** Works best in trending markets; may produce less reliable signals in choppy conditions.

### **Recommendations:**
- Use in conjunction with other technical analysis tools (e.g., trendlines, moving averages).
- Always apply proper risk management (stop-loss, position sizing).
- Test in a demo account before live trading.

### **No Financial Advice:**
This indicator is for educational purposes only and should not be considered financial advice. Consult a licensed financial advisor before making trading decisions.

DO NOT TRADE BASED ON THIS INDICATOR. TRADING IS A RISK PROCESS

1 Nis

Sürüm Notları

Just name changed so that it can be easily identified.

12 Nis

Sürüm Notları

1. Key Features of the Indicator
- Volume-Confirmed S/R Levels: Marks levels where price reversed on high-volume candles.
- Touch Count Tracking: Shows how many times price tested a level (more touches = stronger level).
- Dynamic Zones: Plots **historical S/R zones** based on pivot points, volume, and momentum.
- Customizable Sensitivity: Adjust parameters for different markets (stocks, forex, crypto).
2. How to Interpret the Signals
A. High-Volume S/R Lines (Solid Lines)
-Green Line (Support):
- Drawn when a **high-volume green candle** (bullish) forms.
- Price is likely to **bounce** at this level if tested again.
- Label shows: Price + Touch Count (e.g., `150.50 (T: 3) = tested 3 times).
- Red Line (Resistance):
- Drawn when a high-volume red candle (bearish) forms.
- Price is likely to reject at this level if tested again.
B. Historical S/R Zones (Dashed Areas)
- Red Dashed Zones: Clusters of historical resistance (price struggled to break higher).
- Green Dashed Zones: Clusters of historical support (price bounced multiple times).
- The opacity of zones reflects their strength (darker = stronger).
3. Parameter Adjustments for Better Accuracy
| Input | Recommended Setting | Purpose |
|------------------------|------------------------|-----------------------------------------------------------------------------|
| `Lookback Period` | 200 (default) | Increase for longer-term levels, decrease for short-term trading. |
| `Sensitivity` | 0.8–1.2 | Higher = fewer but stronger levels. Lower = more levels (but weaker). |
| `Volume Multiplier` | 1.5–2.0 | Higher = only extreme volume candles are considered. |
| `Zone Opacity` | 70–90 | Adjust visibility of historical zones. |

- For Intraday: Reduce `lookbackPeriod` to 20–50 and `volume_threshold` to 1.2–1.5.
- For Swing Trading: Use default settings.
THIS INFORMATION IS ONLY FOR EDUCATIONAL PURPOSE NOT FOR TRADING. ALWAYS TAKE THE ADVICE OF YOUR FINANCIAL EXPERT.