Support & Resistance

What is this script ?

Pivot points are tools used to identify potential support and resistance levels in trading. They are calculated using the previous period’s high, low, and close prices. This script leverages pivot points to plot up to four support levels and four resistance levels, helping traders visualize key price zones.

How to Use the Script?

Support and resistance levels represent price zones where significant liquidity often exists due to past price interactions. These levels are critical for traders to:

• Assess Trend Continuation or Reversal: Prices may pause, reverse, or break through at these levels, signaling potential trend changes or continuations.
  
• Manage Risk: Support and resistance levels are ideal for placing stop-loss orders or setting profit targets, as they indicate areas where price reactions are likely.
  
• Plan Entries and Exits: Traders can buy near support levels, sell near resistance levels, or trade breakouts when prices move decisively beyond these zones.