Support & Resistance Power Channel

One-line summary:
A dynamic support/resistance channel that highlights recent extremes, projects actionable zones forward with ATR-based thickness, and quantifies “Buy vs. Sell Power” to gauge who’s in control.

1) What This Indicator Does

This tool builds a power channel using the highest high and lowest low over a configurable lookback. It then expands these bounds into support/resistance areas using a volatility buffer (ATR), plots a midline as a quick gravity center, and marks tests (touches/crosses) of the zones. On top of that, it tallies how many candles were bullish vs. bearish in the lookback window, displaying Buy Power and Sell Power as an ultra-fast market read.

At a glance, you get:

• A resistance area around the recent highest high.

• A support area around the recent lowest low.

• A midline for mean-reversion context.

• Arrows/points to call out zone tests and exact extremes.

• Buy/Sell Power labels to judge recent pressure.

2) How It Works

a) Lookback highs & lows
The indicator computes:

• maxVal = highest high over length.

• minVal = lowest low over length.

• midVal = (maxVal + minVal) / 2.

b) Volatility buffer (zone thickness)
It uses AverageTrueRange[200] * 0.5 to define half-ATR bands around the top and bottom levels. The result is a thickness that adapts to current volatility:

• Resistance area spans maxVal + ATR*0.5 to maxVal - ATR*0.5.

• Support area spans minVal + ATR*0.5 to minVal - ATR*0.5.

c) Forward projection
Zones are drawn from barindex - length (left anchor) to barindex + extend (right projection), so you see the channel ahead of current price action.

d) Buy vs. Sell Power
Over the last length candles, the script counts:

• Buy Power: bars where close > open.

• Sell Power: bars where close < open.
  Neutral candles (dojis) are ignored. Labels are placed near the support/resistance to keep context on the same vertical scale.

e) Zone tests & markers

• A support test is flagged when price reclaims the top of the support band from below (low crosses above topOfSupport), printing an up arrow under the zone.

• A resistance test is flagged when price rejects from the bottom of the resistance band (high crosses below bottomOfResistance), printing a down arrow above the zone.

• Exact occurrences of the absolute high and absolute low in the window are point-marked for precision.

3) Inputs & Defaults

• length (integer) — Lookback window for highs/lows and power count.

  • Typical values: 100–200.

  • Example default: length = 130.

• extend (integer) — Forward projection (how far to extend drawings to the right).

  • Typical values: 15–50 depending on chart timeframe.

  • Example default: extend = 30.

• Colors & opacity (RGBA)

  • Top zone (resistance): tcolR=255, tcolG=0, tcolB=255 (magenta tone)

  • Bottom zone (support): bcolR=0, bcolG=255, bcolB=0 (green tone)

  • Fill transparency: alpha = 60 (soft overlay)
    Tweak to match your chart theme.

• ATR factor (implicit): AverageTrueRange[200] * 0.5

  • You can change the ATR period (e.g., 100, 50) or the multiplier (e.g., 0.35 / 0.75 / 1.0) to tighten or loosen the zones.

4) Plot Elements & Visual Guide

• Resistance area:
  Rectangle + top guideline + “▲ #maxVal#” label at the right extension.
  Useful to spot supply and potential exhaustion.

• Support area:
  Rectangle + lower guideline + “▼ #minVal#” label.
  Useful to spot demand and potential absorption.

• Midline (dotted):
  Horizontal line at the midpoint between maxVal and minVal with a “▶ #midVal#” label.
  Think of this as a balance point—helpful for mean-reversion bias.

• Tests:

  • Up arrows appear when price reclaims the top of support from below.

  • Down arrows appear when price rejects the bottom of resistance from above.

  • Points mark the exact bar(s) that set the window’s absolute high/low.

• Buy/Sell Power labels:
  Plotted to the right of price (halfway into the extension), aligned with the top/bottom zones for instant context.

5) How to Use It in Practice

A) Bounce mindset (range conditions)

• Prefer longs near support area when tests fire upward (up arrows) and Buy Power ≥ Sell Power.

• Prefer shorts near resistance area when tests fire downward (down arrows) and Sell Power ≥ Buy Power.

B) Breakout mindset (trend conditions)

• A strong close beyond the resistance area with rising Buy Power tilts bias to continuation.

• A decisive close below the support area with rising Sell Power favors continuation down.

C) Midline behavior

• In choppy markets, price frequently gravitates to the midline after an extreme; watch for reversion trades back to midline when tests appear at the band edges.

• In strong trends, the midline often flips from magnet to support/resistance. Treat touches as continuation opportunities if power counts agree.

D) Multi-timeframe tips

• Use a higher timeframe channel for regime and key levels, then execute on a lower timeframe when tests or breakouts align with the bigger picture.

Nothing here is financial advice; this is a visual decision aid. Always test and manage risk.

6) Parameter Tuning & Examples

• Increase length for smoother, more stable zones (great for higher timeframes or swing bias).

• Decrease length for reactive zones (scalping/intraday), at the cost of more frequent changes.

• Increase extend when you want the levels to stay visible further into the right margin (handy for planning).

• Decrease extend to declutter on smaller screens or lower timeframes.

• ATR period & factor

  • Shorter ATR or larger multiplier → thicker zones (more tolerance, fewer false tests).

  • Longer ATR or smaller multiplier → thinner zones (tighter precision, more tests).

• Color & opacity

  • Keep high contrast but avoid fully opaque fills; the default alpha=60 is a good balance.

7) Trade Ideas & Rules of Thumb (Non-Financial Advice)

1. Conservative bounce

   • Wait for an up arrow at support (or down arrow at resistance), then a confirming candle in your direction.

   • Stops just outside the zone (e.g., beyond 1× to 1.5× the ATR buffer).

   • Consider partial profits near midline, trail remainder toward the opposite band.

2. Aggressive breakout

   • Enter on a close beyond a band with power count in favor (Buy>Sell for upside, vice versa for downside).

   • Invalidations: return into the zone or power count flipping the other way.

   • Trail using recent swing structure or a multiple of ATR.

3. Midline mean-reversion

   • If range-bound and power is balanced, look for fades from band → midline and midline → opposite band.

8) Limitations & Best Practices

• Trending vs. ranging: Bounces are less reliable in strong trends; consider breakouts + pullbacks instead.

• Late recognition: A very large length makes zones stable but slower to reflect regime shifts.

• Noise: Ultra-short settings may cause over-signaling; pair with structure (swings/volume) to filter.

• Clarity: If the chart feels busy, reduce extend, lighten fills, or hide midline until needed.

9) ProBuilder Code

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