Volume-Based Support and Resistance Zones indicator

Most traders waste time asking the wrong question:
“Where will price go?”

Professionals ask a different one:
“Where has the market already proven interest — with volume?”

Support and resistance are not abstract concepts. They are zones of executed volume, areas where price previously met real participation and was forced to react.
This indicator is built to visualize exactly that — nothing more, nothing less.

The Core Idea: Support & Resistance Are Zones, Not Lines

Traditional support and resistance indicators draw thin lines based on local highs and lows.
That approach ignores the only thing that matters: participation.

Volume-Based Support and Resistance Zones marks levels only when three conditions align:

1. A clear swing structure (fractal logic)
2. A confirmed price reaction
3. Above-average volume at the pivot

If volume is not present, the level is ignored.

This immediately filters out:

• weak pivots,
• random wicks,
• retail noise.

What remains are levels that the market respected with capital.

The “10-Second Read”: How to Use This Indicator Immediately

You do not need complex rules. You need correct interpretation.

Step 1: Identify the Zone Type

Each zone is either:

• Support — price previously rejected lower prices
• Resistance — price previously rejected higher prices

Zones are color-coded by timeframe and direction for instant recognition.

Step 2: Read the Lines Correctly (This Is Critical)

Every zone has a visual hierarchy. This is not decoration — it is information.

1.  Thick Solid Line — The Bounce Level

This is the primary reaction level.

• For support → thick line at the bottom
• For resistance → thick line at the top

This is where:

• reactions are most likely,
• stop placement is logical,
• entries should be evaluated first.

If price respects this line, the zone is valid.

1.  Thin Dashed Line — The Secondary Boundary. This line defines the outer limit of the zone.

Price may enter the zone.
That does not invalidate it.

Only a clean break beyond the zone structure changes the level’s role.

1.  Semi-Transparent Body — The Decision Area

Markets do not react to pixels.

The filled area represents:

• accepted price range,
• volume-weighted reaction space,
• real execution zone.

You trade inside the zone, not off a single price.

Multi-Timeframe Logic: Why Confluence Matters

The indicator displays zones from:

• Chart Timeframe — local, tactical levels
• 4H — structural swing levels
• Daily — macro decision zones

When zones overlap across timeframes, probability increases.

A 5-minute support aligned with a Daily support is not “two lines”.
It is compressed market agreement.

Under the Hood: How Zones Are Formed

The algorithm uses a 5-bar fractal structure:

• Resistance: higher high → pivot → lower highs
• Support: lower low → pivot → higher lows

But structure alone is not enough.

Each pivot is validated using a Volume Moving Average.
If volume at the pivot is not above average, the zone is discarded.

The zone body spans:

• from the wick extreme,
• to the candle body (open/close range).

This reflects where price was accepted, not just rejected.

What This Indicator Is Good At

This tool excels at:

• Identifying high-probability support and resistance levels
• Marking institutionally relevant zones
• Setting logical stop-loss and take-profit levels
• Finding HTF confluence on lower timeframes
• Reducing chart noise without losing context

It works across:

• crypto,
• forex,
• indices,
• stocks.

What This Indicator Will NOT Do (Important)

This is not a signal generator.
It does not predict breakouts.
It does not tell you when to click Buy or Sell.

It answers one question precisely:

Where is the market most likely to react?

Execution is still your responsibility.

Two High-Probability Use Cases

Strategy A: Reaction Trading (Bounce)

• Price approaches a zone
• Reaction occurs at the thick solid line
• Entry after confirmation (price action, delta, volume)
• Stop beyond the zone
• Target next opposing zone

This is classic support resistance trading, done correctly.

Strategy B: Break & Retest

• Price cleanly breaks through the entire zone
• Zone flips its role (support ↔ resistance)
• Retest into the zone
• Entry on confirmation

This works especially well when:

• lower TF zones align with 4H or Daily levels.

Settings That Actually Matter

You do not need optimization gymnastics.

• Volume MA Length — controls how strict volume confirmation is
• Max Zones per TF — keeps the chart clean
• Extend All Active Zones — historical context vs focus
• Zone Fill Width — visual clarity only
• Timeframe Toggles — control signal density

Defaults are work-ready.

Why This Is One of the Best Support & Resistance Indicators

Because it respects how markets really work:

• Levels are confirmed by volume
• Zones are ranges, not fantasy lines
• Multi-timeframe context is native
• Visual hierarchy reflects trading priority
• No repainting of confirmed zones

This is not a retail drawing tool.
It is a market structure map.

Final Thought

Support and resistance are not about predicting price.
They are about knowing where price must prove itself.

Volume-Based Support and Resistance Zones does exactly that —
clearly, objectively, and without noise.

If you trade levels, this tool belongs on your chart.