Support and Resistance Intensity Zones
Hello Traders,
Traditional support and resistance lines often oversimplify the complex sentiment tied to specific market levels. Questions arise: What qualifies as strong support and resistance? What denotes weak support and resistance? How can these levels be precisely defined by a singular price point?
Introducing our new indicator, it takes this concept to another level. It not only visualizes support and resistance levels as zones, but also designates a color gradient based on their intensity.
To achieve this, the indicator allows you to select pivot highs and lows within a chosen range. Following that, you can decide one of two options to illustrate how these multiple pivots at identical levels appear.
The first option is to collate these pivots into 'zones'. Pivots grouped together are all separated by a preselected price percentage. You can decide how many zones to display, with the most clustered pivots bearing the most intense color.
Alternatively, you can present the pivots by 'gradient'. In this case, the closer the pivots are together in price, the more intense the color. As pivots diverge, the color weakens.
To truly appreciate the complexity of support and resistance, these two options must be observed. They reveal that there's far more to these levels than just a singular line.
For more detailed information, please consult the PDF below:
Remember, this visualization tool is a way to perceive and interpret market information, and should always be used alongside solid risk management principles.
Take action now for instant access!
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