The Lux Algo Premium indicator can plot automatic support and resistance levels using 3 different methods. Each method is dependent on the "S/R Significance" setting, with higher values of it allowing the indicator to show more significant supports and resistances. Each method is described below.
The predictive range method displays 5 lines (1 middle line in orange,2 support in blue, 2 resistances in red), and as its name indicates, aims to predict future price ranges in real-time. When the price significantly deviates from the middle line a new predicted range will be displayed.
The S/R significance setting controls how wide the predicted price range is, with higher values returning a wider range and returning less frequent predicted ranges.
The upper resistance line act as main resistance while the lower support act as main support, the secondary resistance, secondary support, and the middle line can all act as a support or resistance.
The predictive method is a novel method that plots 5 support and 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)