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Dynamic Support and Resistance with Fake Signals (Weak/Strong)
Dynamic Support and Resistance with Fake Signals (Weak/Strong) for TradingView
The Dynamic Support and Resistance with Fake Signals indicator provides a comprehensive analysis of market conditions by identifying key support and resistance levels, highlighting potential fake signals, and offering additional visual cues for traders. This article introduces the core functionalities, benefits, and application of this indicator.
Key Features
Dynamic Support and Resistance Levels
The indicator dynamically calculates support and resistance levels using pivot points, Average True Range (ATR), and a specified range of candles.
These levels are displayed as horizontal lines or boxes, providing clear visual cues for traders.
Fake Signal Detection
Identifies potential fake bullish and fake bearish signals based on:
RSI overbought and oversold conditions.
Long upper and lower wicks relative to candle bodies.
High volume compared to the average volume.
Fake signals are classified as Weak or Strong, with annotations and alerts to highlight their strength.
Volume and Wick Analysis
Analyzes candle wick deviations and volume thresholds to detect manipulative price actions or unusual market conditions.
Visual Enhancements
Support and resistance zones are shown as shaded boxes for better clarity.
Alerts and labels provide real-time insights into price action around these levels.
Alerts for Key Events
Custom alerts notify users when:
Fake bullish or bearish signals occur.
Support or resistance levels are broken.
How It Works
Support and Resistance Calculation
The indicator uses pivot high/low values to determine levels and adjusts them dynamically based on ATR values.
Fake Signal Identification
Fake Bullish Signal: Occurs when the price exceeds the resistance level, with a long upper wick, high volume, and RSI in the overbought zone.
Fake Bearish Signal: Occurs when the price falls below the support level, with a long lower wick, high volume, and RSI in the oversold zone.
Strength Classification
Signals are categorized as:
Strong: RSI > 85 (bullish) or < 15 (bearish).
Weak: RSI in less extreme ranges but still meeting other criteria.
Real-Time Alerts
Alerts are triggered for significant events like support/resistance breaches or confirmed fake signals.
Use Cases
Identifying Market Manipulation
Detect fake signals to avoid getting trapped by market makers or manipulative price moves.
Support/Resistance Trading
Leverage dynamically generated levels to find high-probability trade setups.
Enhanced Risk Management
Utilize alerts and signal strengths to make informed decisions and manage risk effectively.
Customization Options
The indicator offers user-configurable parameters to suit various trading styles:
Range Candle Count: Adjust the range length for pivot calculation.
Wick Deviation Factor: Modify the threshold for identifying long wicks.
Volume Threshold: Set the volume ratio for fake signal detection.
RSI and ATR Periods: Tailor the calculations for relative strength and volatility.
Zone Colors: Customize support and resistance box colors.
Conclusion
The Dynamic Support and Resistance with Fake Signals indicator is a powerful tool for traders looking to identify critical price levels and avoid fake signals in the market. By combining advanced technical analysis techniques with real-time alerts and visual cues, this indicator empowers traders to navigate the complexities of financial markets with confidence.
Try this indicator now on TradingView and enhance your trading strategy today!
The Dynamic Support and Resistance with Fake Signals indicator provides a comprehensive analysis of market conditions by identifying key support and resistance levels, highlighting potential fake signals, and offering additional visual cues for traders. This article introduces the core functionalities, benefits, and application of this indicator.
Key Features
Dynamic Support and Resistance Levels
The indicator dynamically calculates support and resistance levels using pivot points, Average True Range (ATR), and a specified range of candles.
These levels are displayed as horizontal lines or boxes, providing clear visual cues for traders.
Fake Signal Detection
Identifies potential fake bullish and fake bearish signals based on:
RSI overbought and oversold conditions.
Long upper and lower wicks relative to candle bodies.
High volume compared to the average volume.
Fake signals are classified as Weak or Strong, with annotations and alerts to highlight their strength.
Volume and Wick Analysis
Analyzes candle wick deviations and volume thresholds to detect manipulative price actions or unusual market conditions.
Visual Enhancements
Support and resistance zones are shown as shaded boxes for better clarity.
Alerts and labels provide real-time insights into price action around these levels.
Alerts for Key Events
Custom alerts notify users when:
Fake bullish or bearish signals occur.
Support or resistance levels are broken.
How It Works
Support and Resistance Calculation
The indicator uses pivot high/low values to determine levels and adjusts them dynamically based on ATR values.
Fake Signal Identification
Fake Bullish Signal: Occurs when the price exceeds the resistance level, with a long upper wick, high volume, and RSI in the overbought zone.
Fake Bearish Signal: Occurs when the price falls below the support level, with a long lower wick, high volume, and RSI in the oversold zone.
Strength Classification
Signals are categorized as:
Strong: RSI > 85 (bullish) or < 15 (bearish).
Weak: RSI in less extreme ranges but still meeting other criteria.
Real-Time Alerts
Alerts are triggered for significant events like support/resistance breaches or confirmed fake signals.
Use Cases
Identifying Market Manipulation
Detect fake signals to avoid getting trapped by market makers or manipulative price moves.
Support/Resistance Trading
Leverage dynamically generated levels to find high-probability trade setups.
Enhanced Risk Management
Utilize alerts and signal strengths to make informed decisions and manage risk effectively.
Customization Options
The indicator offers user-configurable parameters to suit various trading styles:
Range Candle Count: Adjust the range length for pivot calculation.
Wick Deviation Factor: Modify the threshold for identifying long wicks.
Volume Threshold: Set the volume ratio for fake signal detection.
RSI and ATR Periods: Tailor the calculations for relative strength and volatility.
Zone Colors: Customize support and resistance box colors.
Conclusion
The Dynamic Support and Resistance with Fake Signals indicator is a powerful tool for traders looking to identify critical price levels and avoid fake signals in the market. By combining advanced technical analysis techniques with real-time alerts and visual cues, this indicator empowers traders to navigate the complexities of financial markets with confidence.
Try this indicator now on TradingView and enhance your trading strategy today!
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.