Support & Resistance

Automated Level Detection

Drawing Support and Resistance (S/R) lines can be subjective and tedious. This tool automates the process by scanning historical price action to find "clusters" where price has reacted multiple times.

It doesn't just draw lines; it identifies High-Probability Zones where liquidity and orders are stacked.

Rank Hierarchy

The Interbank Price Action indicator uses a sophisticated ranking system for Support and Resistance (S/R) levels. Unlike traditional pivot markers, these ranks are dynamically calculated based on historical significance and price interaction density.

The Ranking Logic

The indicator evaluates every potential S/R zone based on two primary factors:

1. Pivot Density: The number of major swing highs and lows that fall within the zone's price range.

2. Price Interaction (Hits): The number of times the price (OHLC) has interacted with the zone over the last 500 candles.

Levels are sorted by their composite strength score, and the top-performing levels are assigned a Rank Name.

Rank Hierarchy

The hierarchy defines the reliability and expected "bounce" probability of a level.

Rank	Name	Description
#1	ELITE	The highest-strength level on the chart. Typically represents a major historical turning point with extreme price confluence.
#2 - #3	STRONG	Highly reliable levels that have survived multiple tests. These are your primary zones for high-conviction entries.
#4 - #5	PROVEN	Established levels with a track record. They act as solid foundations for trend continuation or standard pullbacks.
#6 - #8	BALANCED	Moderate levels that represent fair value areas or secondary consolidation zones.
#9+	WEAK	Minor levels or newly forming zones. Use these with caution as they are more prone to being swept.

How to Trade the Ranks

1. The "Elite" Magnet

The ELITE level often acts as a major magnet for price. If price is approaching an Elite level after a long trend, expect a significant reaction (either a sharp reversal or a high-volume breakout).

2. Confluence with "Strong" Zones

Look for entries where a STRONG level aligns with other concepts like Killzones or Order Blocks. A Strong level provides the "floor" or "ceiling" needed to confirm institutional interest.

3. "Proven" for Stop Placement

PROVEN levels are excellent for placing stop losses or trailing stops. Because the market has recognized these levels multiple times, price is less likely to breach them without a genuine change in trend.

4. Scalping "Balanced" Levels

If you are a scalper or intraday trader, BALANCED levels provide excellent targets for taking partial profits (TP1/TP2) as price often pauses or consolidates briefly at these zones.

Dynamic Updating: Remember that ranks are dynamic. A level that is currently STRONG may become ELITE if price continues to respect it, or it may drop in rank if it is repeatedly "chopped" through without reaction.

Always check the Hit Count in the level's tooltip. A PROVEN level with high hit counts is often safer than a STRONG level that was only established recently.

How It Works

1. Scan: The script looks back over a defined period (Loopback) to find every Pivot High and Pivot Low.

2. Cluster: It analyzes where these pivots stack up at the same price level.

3. Qualify: Only levels with a high density of touches are kept. Weak, random levels are filtered out.

4. Visualize: The strongest levels are drawn as horizontal zones extending to the right.

Customization

1. Loopback Period

• Short: Finds S/R levels based on recent price action (good for scalping).

• Long: Finds major historical S/R levels that have been respected for a long time (good for swing trading).

2. Zone Attributes

• Channel Width: Controls the vertical thickness of the S/R zone.

  • Tip: Increase this slightly for volatile assets (like Crypto) to catch wicks.

• Strength Threshold: The filter for quality.

  • Higher Value: Shows fewer zones, but they are very significant.

  • Lower Value: Shows more zones, capturing minor supports.

3. Visuals

• Colors: Resistance is Red, Support is Blue/Green (customizable).

• Mean Line: Draws a thin line through the center of the zone for precision entries.

• Labels: Displays the exact price level on the chart scale so you can set your alerts or limit orders easily.