Support Line [by rukich]

🟠 OVERVIEW

The indicator displays a floating line that acts as a support level. It's important to remember that any support level can be broken.


🟠 COMPONENTS

The indicator is based on the percentage difference between the closes of the n-th bar back and the current bar. The resulting percentage is smoothed to remove noise.

The indicator is displayed as a green-red line (the colors don’t carry meaning — they are used just for visual variety). When the price touches the support level, the bar background turns green.
For convenience, there is a label on the right side of the indicator showing the current value of the line.


🟠 HOW TO USE

The indicator includes several settings that can be adjusted, though optimal defaults are provided.
Settings:

• Timeframe — specifies which timeframe’s data is used to calculate the line.
  
• Candles back — specifies how many bars back from the current one are used.
  

The indicator should be used according to general support-zone logic. Since no support zone guarantees a price bounce, the optimal approach is to confirm the reaction after the price touches the line.

Example of use:
In the current example, the Timeframe in the indicator settings is set to 1 hour, and the currently open chart is 5 minutes. This means that on the 5-minute chart we see a 1-hour line. After the price touches the support line, you need to see a confirmation of the reaction to understand whether the support zone is holding the price.

In the examples, reaction confirmation is shown through: the formation of an M5 shift and the invalidation of an FVG M5- (the latter is more risky than the M5 shift):




🟠 CONCLUSION

The indicator shows a floating support zone, and when tested, you should confirm the reaction on a lower timeframe.