Support & Resistance Methods

Predictive Range - Predictive S/R - Trendlines

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 second drop-down menu (SR Significance), with higher values allowing the indicator to show more significant supports and resistances.

Each method is described below.

Predictive Ranges

The Predictive Ranges are an SR method displaying real-time support and resistance levels, with two resistances (in red), two supports (in blue), and one mid-level (in orange).

When the price deviates significantly from the mid-level a new range is displayed, using lower SR Significance values will return more frequent ranges.

Predictive Trendlines

The Predictive Trendlines estimate and display real-time trendlines on the chart. these can be used as potential support and resistances.

Trendlines are generally drawn from pivots-high's/pivots-low's, as such one can use the predictive trendlines to estimate potential pivot points, with a new line displayed indicating a potential top/bottom.

New lines can indicates potential tops/bottoms

Predictive Channels

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.

Predictive Curves

The Predictive Curves display non-linear channels on the chart, with extremities estimating potential support and resistance points. The width of the channels becomes lower when a trend persists over time.

The Predictive Curves can be an interesting method to use when underlying trends in the price are non-linear.

Institutional Profile

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.

Make sure the symbol you are applying the indicator to has volume data and contains at least 200 bars.

Reading The Institutional Profile

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.

Peak Activity Line

The institutional profile displays an extended dotted line showing the price value where the highest recorded institutional activity.

Note that visual artifices such as lines having a different starting position or multiple lines showing up might occur in very low timeframes for a brief moment.

Auto-Trendlines

Enabling Auto-Trendlines will return various trendlines on your chart, these can be used as support and resistance.

If you don't see any trendline on your chart make sure to zoom out or scroll horizontally to the left, this will load past trendlines.

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)

Note that these trendlines do not appear in real-time