Support Resistance Importance

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The Support Resistance Importance indicator is designed to highlight key price levels based on the relationship between fractal occurrences and volume distribution within a given price range. By dividing the range into bins, the indicator calculates the total volume traded at each fractal level and normalizes the values for easy visualization. The normalized values represent an "importance score" for each price range, helping traders identify critical support and resistance levels where price action might react.

Key Features:
Fractal Detection:

The indicator detects Williams Fractals, which are specific price patterns representing potential market reversals. It identifies both upward fractals (potential resistance) and downward fractals (potential support).
Price Range Binning:

The price range is divided into a user-defined number of bins (default is 20). Each bin represents a segment of the total price range, allowing the indicator to bucket price action and track fractal volumes in each bin.
Volume-Based Importance Calculation:

For each bin, the indicator sums up the volume traded at the time a fractal occurred. The volumes are then normalized to reflect their relative importance.
The importance score is calculated as the relative volume in each bin, representing the potential influence of that price range. Higher scores indicate stronger support or resistance levels.
Normalization:

The volume data is normalized to allow for better comparison across bins. This normalization ensures that the highest and lowest volumes are scaled between 0 and 1 for visualization purposes. The smallest volume value is used to scale the rest, ensuring meaningful comparisons.
Visualization:

The indicator provides a table-based visualization showing the price range and the corresponding importance score for each bin.
Each bin is color-coded based on the normalized importance score, with blue or greenish shades indicating higher importance levels. The current price range is highlighted to help traders quickly identify relevant areas of interest.
Trading Utility:

Traders can use the importance scores to identify price levels where significant volume has accumulated at fractals. A higher importance score suggests a stronger likelihood of the price reacting to that level.
If a price moves towards a bin with a high score and the bins above it have much smaller values, it suggests that the price may "pump" up to the next high-scored range, similar to how price drops can occur.
Example Use Case:
Suppose the price approaches a bin with an importance score of 25, and the bins above have much smaller values. This suggests that price may break higher towards the next significant level of resistance, offering traders an opportunity to capitalize on the move by entering long positions or adjusting their stop losses.
This indicator is particularly useful for support and resistance trading, where understanding key levels of price action and volume can improve decision-making in anticipating market reactions.

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Practical Use Cases:
Identifying Critical Support/Resistance Levels:

The importance score indicates how much volume was traded at specific fractal levels, giving an idea of where price might react. For example, a high-importance score at a specific price range suggests that it is a strong support or resistance zone. If price approaches this range, you might anticipate a bounce (support) or a reversal (resistance).
Example:
Price approaches a bin with a high importance score of 25, while the bins above have much lower scores (e.g., 5 or 10). This suggests that the price may face strong resistance at this level. You could plan to sell or tighten your stop-loss, anticipating a reversal or retracement.

Predicting Breakouts:

If price moves into a high-importance bin and surpasses it, and the following bins have much lower scores, it suggests that the price may "pump" up toward the next significant high-scored bin. This can be used to anticipate breakouts in bullish or bearish directions.
Example:
Price is hovering around a high-importance score bin (e.g., 20) with low importance levels above it (e.g., 2, 3, or 5). This suggests that once the price breaks above this high-importance range, there’s little resistance in the near term, and the price may quickly rally toward the next high-score bin.

Using Volume to Confirm Price Moves:

Traders can use the importance score to confirm the strength of a price move. If a significant volume of trades occurred during a fractal at a specific price range, this adds credibility to that level. Trading breakouts or reversals at these levels becomes more reliable.
Example:
If price drops toward a bin with a high importance score and rebounds, you could take a long position anticipating a reversal. Similarly, if price breaks through a high-score range on strong momentum, you might enter a short position, expecting further declines.

Adjusting Stop-Loss and Take-Profit Levels:

Use the importance scores to set stop-losses and take-profit levels around key support and resistance ranges. The normalized scores allow you to see where price is most likely to stall or reverse, helping you place your exits more effectively.
Example:
Set a stop-loss just below a high-score support zone if you're long, or just above a high-score resistance zone if you're short, minimizing risk. For take-profit levels, target bins with lower scores after breaking through a high-importance range.

Volume-Based Market Sentiment:

This indicator gives a sense of market sentiment by showing where significant volumes were traded. If the current price range has low importance, it may indicate low interest or participation, suggesting that the price could be more volatile or prone to rapid movements once it breaks out.

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added target calculation

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changed defaults