Price Action Levels Script
This is an analyzer script. It marks important price pivot levels in advance. It selects only those levels, from which the price has gone a considerable distance. This may be a sign of a significant imbalance of supply and demand at that level. And in the future, when the price comes back to this level, the price may reverse again.
In a few seconds the script allows you to analyze a chart on different timeframes, identify important price ranges and track the price approaching important high and low levels.
The script marks on what timeframe the level has been found. If the levels overlap, the script draws a level with another color (default - darker). This allows you to define "fresh" levels, for which there were no touches.
When you start the script again on the same instrument and timeframe, the script will remove the levels of this timeframe. I.e. if you analyze the M15 and H4, and then re-start the script on H4, it will delete only the levels of this period.
- the distance below or above the current price where to analyze
- show only support or resistance
- configure colors of levels and border lines
- enable or disable correction of level borders which overlap
The script does not show all the levels. It determines the width of the level and determines how far the price has gone from this level. If the movement after the level is 3 or more times larger than the width of the level, it is considered significant and the script it will draw it on the chart. The logic is simple - if the price has ever gone from this level at some distance, then it is likely to repeat such a move. Therefore, the script selects the levels at which you can open a deal with the risk of at least 1 to 3. This factor and the minimum width of the level can be changed in the settings.