Fractal Support & Resistance [JOAT]

Fractal Support & Resistance — Automatic Level Detection with Volume Weighting

Fractal Support & Resistance automatically identifies key price levels using a proprietary combination of fractal detection, volume analysis, and dynamic touch counting. Levels are intelligently styled based on their strength and how many times they have been tested, giving you instant visual feedback on level importance.

Why This Script is Protected

This script is published as closed-source to protect the proprietary level management algorithm and the unique volume-weighted strength calculation methodology from unauthorized republishing. The specific implementation of touch detection, level merging logic, and dynamic opacity calculations represents original work that differentiates this from standard fractal indicators.

What Makes This Indicator Unique

Unlike basic fractal indicators that simply mark pivot points, this system:

• Tracks how many times each level has been tested (touch counting)
  
• Weights level importance by volume at the fractal point
  
• Merges nearby fractals into single levels instead of cluttering the chart
  
• Dynamically adjusts visual opacity based on level strength
  
• Provides zone boxes around levels for realistic price reaction areas
  

What This Indicator Does

• Detects fractal pivot highs and lows to establish support and resistance levels
  
• Tracks how many times each level has been touched or tested
  
• Weights level importance by volume at the fractal point
  
• Draws extending lines and zone boxes for each level
  
• Dynamically adjusts level opacity based on touch count for visual strength indication
  
• Provides a dashboard with nearest levels and counts
  

Core Methodology

The indicator uses Williams Fractal concepts as a foundation but extends them with proprietary enhancements:

• Fractal Detection — Identifies pivot highs and lows where price creates local extremes with confirmation bars on each side. A fractal high requires the highest point with lower highs on both sides; a fractal low requires the lowest point with higher lows on both sides.
  
  
• Level Clustering — New fractals within a tolerance zone (based on Zone Padding %) update existing levels rather than creating duplicates. This keeps the chart clean and focuses on significant price areas.
  
  
• Volume Integration — Volume at each fractal point is accumulated to weight level significance. Higher volume fractals are considered more important.
  
  
• Touch Tracking — The system monitors when price approaches existing levels and increments touch counts. More touches indicate stronger, more significant levels.
  

Visual Strength System

Level appearance changes dynamically based on market interaction:

• Newer or less-tested levels appear more transparent (up to 80% transparency)
  
• Each additional touch reduces transparency by 15%
  
• Heavily tested levels become more prominent and opaque (minimum 20% transparency)
  
• Labels display level number and touch count (e.g., "R1 (3)" = Resistance 1 with 3 touches)
  
• Zone boxes provide visual areas around each level
  

Color Scheme

• Resistance Color — Default: #FF5252 (red) — Used for resistance levels and zones
  
• Support Color — Default: #4CAF50 (green) — Used for support levels and zones
  
• Zone Fill — 90% transparent version of level color
  
• Zone Border — 70% transparent version of level color
  
• Labels — 30% transparent background with white text
  

Dashboard Information

The on-chart table (bottom-left corner) displays:

• Number of active resistance levels meeting minimum touch requirement
  
• Number of active support levels meeting minimum touch requirement
  
• Nearest resistance level above current price
  
• Nearest support level below current price
  

Inputs Overview

Fractal Settings:

• Fractal Period — Bars on each side for fractal confirmation (default: 2, range: 1-10)
  
• Max Levels Per Side — Maximum resistance and support levels to track (default: 5, range: 1-20)
  
• Zone Padding (%) — Level zone width as percentage of price (default: 0.2%, range: 0-2%)
  

Filtering:

• Volume Weight Levels — Toggle volume-weighted level importance (default: on)
  
• Min Touches to Show — Filter out levels with fewer touches (default: 1, range: 1-10)
  
• Lookback Period — Historical bars to analyze for level detection (default: 200, range: 50-500)
  

Visual Settings:

• Resistance/Support Colors — Customizable color scheme
  
• Show Zone Boxes — Toggle filled zone areas around levels
  
• Show Level Labels — Toggle level labels with touch counts
  
• Show Fractal Markers — Toggle small triangles at fractal points
  
• Show Dashboard — Toggle the information table
  
• Line Width — Thickness of level lines (default: 2, range: 1-5)
  

How to Use It

For Support/Resistance Trading:

• Use levels with higher touch counts as stronger support/resistance references
  
• More opaque levels have been tested more times and are more significant
  
• Watch for price reactions at zone boundaries, not just exact level prices
  
• Combine with candlestick patterns at levels for entry signals
  

For Breakout Trading:

• Watch for breakouts when price closes beyond a level
  
• Levels with many touches that finally break often produce strong moves
  
• Use the zone box—a close beyond the zone is more significant than just touching the level
  
• Set alerts for resistance/support breaks
  

For Target Setting:

• Use the nearest resistance as a profit target for long positions
  
• Use the nearest support as a profit target for short positions
  
• Dashboard shows these levels for quick reference
  

Alerts Available

• FSR Resistance Break — Price closes above a resistance level
  
• FSR Support Break — Price closes below a support level
  
• FSR New Fractal High — Fresh fractal high detected
  
• FSR New Fractal Low — Fresh fractal low detected
  

Best Practices

• Increase Fractal Period for fewer but more significant levels
  
• Use Min Touches filter to show only well-tested levels
  
• Volume weighting helps identify institutionally significant levels
  
• Combine with trend indicators—trade with the trend at levels
  

This indicator is provided for educational purposes. It does not constitute financial advice. Past performance does not guarantee future results. Always conduct your own analysis and use proper risk management before making trading decisions.

— Made with passion by officialjackofalltrades