Dynamic Support & Resistance Indicator
This PineScript indicator is designed to visually identify zones of value (ie. dynamic support and resistance).
The zones are determined by three exponential moving averages operating in confluence. It is useful for trend-continuation and trend-following price action strategies.
How It Works
The default settings are:
Long-term EMA: 200 Period.
Short-term EMA 1: 50 Period.
Short-term EMA 2: 20 Period.
So according to the default settings, when the 20EMA is above the 50EMA, and the 50EMA is above the 200EMA, the area between the 20EMA and the 50EMA will turn green.
When the 20EMA is below the 50EMA, and the 50EMA is below the 200EMA, the area will turn red. When the EMAs are all over the place (ie. price is consolidating), the area will be painted white.
Longterm EMA Length:
This sets the long-term EMA period for determining overall trend.
Longterm EMA Source:
This sets the source of the long-term EMA.
DSR 1 EMA Length:
This sets the period of the first short-term moving average.
DSR 1 EMA Source:
This sets the source of the first short-term moving average.
DSR 2 EMA Length:
This sets the period of the second short-term moving average.
DSR 2 EMA Source:
This sets the source of the second short-term moving average.
Don’t Fill Asynchronous Zones?
If enabled then the script will only color the EMA zones if the EMAs are in confluence (ie. if the first short-term moving average is above the second short-term moving average, and both moving averages are above the long-term moving average).
// Created by Matthew J. Slabosz // www.zenandtheartoftrading.com // @version=3 study(title = "MJS - Dynamic Support & Resistance", shorttitle="DSR", overlay = true, precision=5) emaMainLength = input(200, minval=1, title="Longterm EMA Length") emaMainSource = input(close, title="Longterm EMA Source") emaDSR1Length = input(50, minval=1, title="DSR 1 EMA Length") emaDSR1Source = input(close, title="DSR 1 EMA Source") emaDSR2Length = input(20, minval=1, title="DSR 2 EMA Length") emaDSR2Source = input(close, title="DSR 2 EMA Source") dontPaintInvalidZones = input(title="Don't Fill Asynchronous Zones?", type=bool, defval=true) // Get EMAs ema200 = ema(emaMainSource, emaMainLength) ema50 = ema(emaDSR1Source, emaDSR1Length) ema20 = ema(emaDSR2Source, emaDSR2Length) trend = ema200 > ema50 and ema50 > ema20 // Bearish trend invalid = dontPaintInvalidZones and ((ema200 > ema50 and ema50 < ema20) or (ema200 < ema50 and ema50 > ema20)) // EMAs are not synchronous // Draw invisible plot lines required for zone color fill z1 = plot(ema20, color = na, transp=100) z2 = plot(ema50, color = na, transp=100) // Fill zone fill(z1, z2, color=(trend ? red : (invalid ? white : lime)), transp=75) // Draw long-term EMA plot(ema200, color=trend ? red : (invalid ? black : green), linewidth=2, transp=0)
Last Updated: 21st March, 2019