The Lux Algo Premium indicator can plot automatic support and resistance levels using 4 different methods. Each method (except volume profile) is dependent on the "S/R Significance" in the advanced settings section, with higher values of it allowing the indicator to show more significant supports and resistances. Each method is described below.
The predictive method is a novel method that plots 3 support or resistance levels in real-time. Unlike many other methods, this one does not make use of pivot high/low detection to return its support and resistance levels, which can allow it to be more robust to trending markets. It can also be useful for spotting ranges whereas the price can interact in between two significant areas of support & resistance.
Enabling trendlines will return various trendlines on your chart, these can be used as support and resistance.
This is a useful tool for finding perspectives and significant areas of support or resistance you may not have been able to see without our algorithm. (See example above)
The institutional profile is an alternative to the volume profile, and indicates the accumulated institutional activity over 100 price ranges over a period of 200 bars.
The institutional profile is calculated over 200 bars and makes use of 100 price ranges.
A gradient is used to color each bar, with lighter colors used for the bars with the highest accumulated institutional activity.
The institutional profile displays an extended dotted line showing the price value where the highest recorded institutional activity.
The institutional pivots method displays pivot levels over time where institutional activity was present, these can be used as supports and resistances or can serve as reference points to draw trendlines.
The predictive channels method displays various linear support and resistances over time. When the price deviates from a channel a new one displayed. This method mimics time-segmented linear regressions, but will have the benefits to appear in real-time.
The S/R significance setting controls the width of the channels, with higher values returning wider channels at a lower frequency.