ZigZag + Support/Resistance

ZigZag + Support/Resistance — Overview

This tool combines a ZigZag swing-detection engine with an automatic Support and Resistance system. Swing highs become resistance zones, swing lows become support zones, and each zone is drawn, merged, extended, or expired according to market activity.

The goal of this indicator is to create a clear, structured view of market turning points and key levels, without manual plotting. It helps traders understand where price has previously reacted, where liquidity may rest, and how structure shifts over time.

How the Indicator Works

• The ZigZag engine identifies significant market swings by waiting for price to move far enough in one direction to confirm a true turning point.
  
• A confirmed swing low becomes a Support level.
  
• A confirmed swing high becomes a Resistance level.
  
• The indicator connects ZigZag pivots visually if enabled.
  
• Every time a new swing forms, the indicator automatically adds or updates the nearest Support or Resistance zone.
  

Support and Resistance Zones

• Instead of drawing simple horizontal lines, this script uses price “bands” taken from the candle’s wick and body at the swing point. This gives more realistic zones that represent true areas where the market reacted.
  
• Each zone extends to the right for a user-defined number of bars and remains active until one of the following occurs:
  
• Price breaks the level
  
• (optional: requires a candle close depending on settings)
  
• The level expires
  
• based on the chosen lifetime or automatic timeframe-based defaults.
  
• When a zone is broken or expires, it automatically disappears from the chart.
  

Zone Merging

• The indicator includes advanced logic to identify overlapping or near-overlapping zones:
  
• Zones that touch or nearly touch each other can be merged.
  
• Merged zones can be displayed with a neutral color if desired.
  
• The tool automatically combines, updates, and redraws these zones to keep the chart clean and organized.
  
• This prevents clutter and highlights areas where multiple reactions have occurred, signaling stronger levels.
  

ZigZag Swings

• The ZigZag component identifies major market swings using the “ZigZag Length” setting.
  
• Higher values produce fewer, stronger swings.
  
• Lower values produce more detailed swing structure.
  
• When enabled, the indicator draws straight lines connecting each ZigZag pivot to the next, outlining the overall trend and showing the flow of market structure.
  
• Each ZigZag pivot directly feeds the Support/Resistance system.
  

Key Features

• Automatic support and resistance detection
  
• Full zone visualization (rectangles or lines)
  
• Optional merging of overlapping or nearby zones
  
• Adjustable zone transparency and appearance
  
• Time-based expiration of old or inactive levels
  
• Option for break-confirmation using only candle closes
  
• ZigZag swing visualization
  
• Adaptable to any timeframe
  

Recommended Use

• This indicator is designed for traders who rely on market structure, swing analysis, or price-reaction areas. It is useful for identifying potential turning points, breakout zones, liquidity areas, and strong historical supports/resistances.
  
  
• Whether you trade reversals, breakouts, trend continuation, or liquidity concepts, this tool provides an organized and automated view of the most important levels on the chart.