S&R Zone Signals
This simple script is designed for structure based traders and trading strategies, although it can be used by anyone who uses price zones and basic candlestick patterns in their trading.
The purpose of this indicator is to generate trading alerts when these patterns occur in order to reduce the screen-time required to monitor setups.
How It Works
If price puts in an Engulfing Candle, a Doji Candle, a Hammer Candle or a Shooting Star Candle pattern within the zone you specify, then a trading signal and alert will be generated.
If you leave either zone set to 0 then that zone will not be used, meaning that you can use this to detect both support and resistance signals, or only signals at support, or only signals at resistance.
First resistance zone.
Second resistance zone.
First support zone.
Second support zone.
Enable/Disable Visual Signals
How Far To Look Back For Swing High/Lows:
Used for detecting fractal lows for candle patterns.
This changes the maximum size of detectable doji candles.
Hammer Wick Size:
This changes the minimum size of the wick of detectable hammer/shooting star candles.
Must Engulf Wick:
If enabled, then engulfing candles must engulf the previous wick to be considered valid.
Show Engulfing Candles:
Enable/Disable visual signals for engulfing candles.
Show Doji Candles:
Enable/Disable visual signals for doji candles.
Show Hammer Candles:
Enable/Disable visual signals for hammer and shooting star candles.
// Created by Matthew J. Slabosz // www.zenandtheartoftrading.com // @version=3 study("ZEN - Zone Signals", shorttitle="Zones", overlay=true) // Get user inputs r1 = input(type=float, defval=0.0, title="R1") r2 = input(type=float, defval=0.0, title="R2") s1 = input(type=float, defval=0.0, title="S1") s2 = input(type=float, defval=0.0, title="S2") drawSignals = input(type=bool, defval=true, title="Draw Signals?") lookback = input(7, minval=1, title="How Far To Look Back For Swing High/Lows?") dojiSize = input(0.5, minval=0, title="Doji Size (in pips):") hammerWickSize = input(2.5, minval=0.1, title="Hammer Wick Size (X Body):") engulfWick = input(title="Must Engulf Wick?", type=bool, defval=false) showEC = input(title="Show Engulfing Candles", type=bool, defval=true) showDJ = input(title="Show Doji Candles", type=bool, defval=false) showHM = input(title="Show Hammer Candles", type=bool, defval=false) // Flip resistance values if they are in the wrong order if(r1 < r2) t = r1 r1 := r2 r2 := t // Flip support values if they are in the wrong order if(s1 < s2) t = s1 s1 := s2 s2 := t // Check if our basic conditions are met fractalBuy1 = (close < open and close > open and low > low and low < low and low == lowest(low, 4)) and open <= close fractalBuy2 = (close < open and close > open and low < low and low == lowest(low, 4)) and open <= close fractalSell1 = (close > open and close < open and high > high and high == highest(high, 4)) and open >= close fractalSell2 = (close > open and close < open and high < high and high > high and high == highest(high, 4)) and open >= close engulfsSwingHighRule = close <= highest(close, lookback) engulfsSwingLowRule = close >= lowest(close, lookback) // Gather data on candlesticks bodySize = abs(open - close) topWickSize = abs(high - close) bottomWickSize = abs(low - close) bodySizePoints = bodySize / syminfo.mintick pointsCloseMinusOpen = abs(close - open) // Detect valid engulfing candlestick patterns bullishEngulfing = (fractalBuy1 or fractalBuy2) bearishEngulfing = (fractalSell1 or fractalSell2) bullishEcWick = engulfWick ? close >= high : false bearishEcWick = engulfWick ? close <= low : false // Detect other patterns (dojis & hammers) hammer = bottomWickSize >= (bodySize * hammerWickSize) and topWickSize <= (bodySize / 2) and low <= lowest(low, lookback) and ((close < open and open >= close) or (close > open and close <= open)) and close <= highest(close, lookback) star = topWickSize >= (bodySize * hammerWickSize) and bottomWickSize <= (bodySize / 2) and high >= highest(high, lookback) and ((close > open and open <= close) or (close < open and close <= open)) and close >= lowest(close, lookback) doji = (bodySize <= dojiSize * 10 * syminfo.mintick) dojiLong = doji and close <= highest(close, lookback) and low <= lowest(low, lookback) dojiShort = doji and close >= lowest(close, lookback) and high >= highest(high, lookback) // Draw invisible plot lines required for zone color fill zr1 = plot(r1 != 0 ? r1 : na, color = red, transp=50) zr2 = plot(r2 != 0 ? r2 : na, color = red, transp=50) zs1 = plot(s1 != 0 ? s1 : na, color = green, transp=50) zs2 = plot(s2 != 0 ? s2 : na, color = green, transp=50) // Fill zones fill(zr1, zr2, color=red, transp=80) fill(zs1, zs2, color=green, transp=80) // Candle rules for resistance zone resFlag = (r1 > r2 ? ((high >= r2 and high <= r1) or close >= r2 and close <= r1) : ((high >= r1 and high <= r2) or (close >= r1 and close <= r2))) // Determine whether or not we have a valid setup validLong = ((showEC and bullishEngulfing) or (showDJ and dojiLong) or (showHM and hammer)) and low <= s1 and low >= s2 validShort = ((showEC and bearishEngulfing) or (showDJ and dojiShort) or (showHM and star)) and high <= r1 and high >= r2 // Plot signals plotshape(validLong, title= "Long Entry", location=location.belowbar, color=bullishEcWick ? lime : green, transp=0, style=shape.triangleup, text="Long") plotshape(validShort, title= "Short Entry", color=bullishEcWick ? maroon : red, transp=0, style=shape.triangledown, text="Short") // Send out an alert if this candle meets our conditions alertcondition(validLong or validShort, title="Zone Alert!", message="Zone alert for XXX")
Last Updated: 21st June, 2019