Support and Resistance Settings
The Support and Resistance (S/R) component in the ILPAC indicator provides settings that allow traders to customize how support and resistance zones are detected, displayed, and managed on the chart. These settings enable users to adapt the component to their trading style and preferred time horizon. Below is a detailed overview of the configurable options:
Support & Resistance
Description: Toggle this option to enable or disable the Support and Resistance component on the chart. When enabled, the component identifies and displays key support and resistance zones, helping traders spot potential reversal or breakout areas.
Support & Resistance Time Horizon
Description: Sets the look-back period used to calculate support and resistance zones.
Functionality:
Higher Values: Capture broader, long-term support and resistance zones, ideal for swing or position trading.
Lower Values: Highlight shorter-term zones, making them suitable for scalping or intraday trading.
Zone Expiry Age
Description: Specifies the maximum age of a support or resistance zone in bars. Zones older than this value will be automatically removed from the chart.
Functionality: Helps keep the chart uncluttered by removing outdated zones that are less relevant to current market conditions.
Swing Points Search Limit
Description: Determines how many bars back the script searches for swing highs and lows to pair for support and resistance zones.
Functionality: Higher values allow for the identification of more distant zones, while lower values focus on recent swing points.
Visual Repainting
Description: Toggles whether zones are drawn from their originating pivots or based on when they first appear on the chart.
Functionality:
Enabled: Zones are drawn from their pivot points, offering a cleaner look and easier historical analysis.
Disabled: Zones reflect the exact moment they appeared, showing their relevance in real-time.
Support & Resistance Base Color
Description: Sets the base color used for support and resistance zones.
Functionality: Helps distinguish the zones visually on the chart for easy identification.
Support & Resistance Highlight Color
Description: Specifies the highlight color for support and resistance zones that are actively being updated or interacted with.
Functionality: Highlights zones currently relevant to price action, drawing attention to key areas of interest.
How These Settings Can Be Used
Adjust Time Horizon for Trading Style:
Use a lower time horizon for scalping and day trading to capture short-term support and resistance zones.
Set a higher time horizon for swing or position trading to identify significant, long-term zones.
Control Chart Clutter with Zone Expiry:
Enable zone expiry and set a reasonable age limit to ensure the chart remains focused on current market conditions.
Leverage Visual Repainting:
Enable repainting for historical clarity and cleaner visuals.
Disable repainting to see when zones were first detected and their progression over time.
Use Color Customization for Quick Analysis:
Assign distinct base and highlight colors to make key zones stand out, helping you focus on areas of active price interaction.
These settings allow traders to fine-tune the Support and Resistance component to suit their trading needs. By adjusting the time horizon, managing zone expiry, and customizing colors, traders can effectively identify and monitor critical price levels, enhancing their ability to respond to market movements.
Last updated