Major Levels

#What you see

Horizontal lines at the major price levels of the market, found in its whole history back to the first candle, not only in the candles on screen. Green lines are support (price is above them), red lines resistance (price is below them). A level that price broke through changes its colour from that candle on. Stronger levels are drawn more opaque and thicker. The label at the right end shows the score and the timeframes that confirm the level, e.g. 74 · 1D+4H.

Each line starts on the candle after the level was confirmed and only appears where its score at that time reached Minimum score, so scrolling back shows what was known back then. With Draw from confirmation off, the lines of the levels that pass the filter at the right edge of the view run across the whole view instead. Zones shades the price range of the swing points behind each level. Max levels in view keeps the strongest ones when many levels are close together.

The legend shows the nearest level above and below the candle under the cursor with its score, e.g. Above (74) 85,078.9. While the history loads it says so; if it can't be loaded (no connection), the levels come from the loaded candles only and the legend tells you.

#How it works

For each selected timeframe (weekly, daily, 4-hour, optionally hourly), swing highs and swing lows that lie close together form a level – highs and lows together, because a former resistance that later holds as support is the same level. "Close" is Level tolerance times the average true range (ATR) of that timeframe, so the tolerance grows with the timeframe and with volatility. Pivots per level sets how many swing points a level needs; Pivot strength how clearly a swing has to stand out (higher = fewer, larger swings). The same level on several timeframes becomes one level (confluence).

After its confirmation, every candle that comes within Touch tolerance × ATR of a level counts as a touch, and a close more than Break tolerance × ATR on the other side as a break.

The score from 0 to 100 rises with the highest confirming timeframe, the number of touches, how far price moved away after recent touches, how often the level held recently instead of being broken, and its age. A level that price keeps running through scores lower than one that keeps holding. The score is updated with every touch and break; earlier candles always see the score of their time.

#How to read it

• Levels with a high score on the weekly or daily timeframe are the ones the whole market watches: expect reactions there.
• A level that changed colour (broken resistance now support) is often retested from the other side.
• Raise Minimum score to see only the strongest levels, lower it to see more.

#Using it in strategies

Outputs: above and below (nearest level above and below the close with at least Minimum score at that time), aboveScore and belowScore, aboveDist and belowDist (distance from the close in ATR of the chart candles), touch (+1 a level held as support on this candle, −1 rejected price as resistance, otherwise 0) and break (+1 the candle closed above a level, −1 below). Only levels confirmed before the candle count, with their score from back then, so backtests see what was known at the time. In the chart, in F5 backtests and in the Strategy Lab the levels come from the whole history; where only the candles of the test are available, from those candles. In the Trade Setup, "Price vs line" works with above and below, and "Compare" checks the score or the distance. In WickScript, major(70).below is the nearest level below with a score of at least 70 and major(70).touch == 1 a candle that held on one; the detection settings are named values, e.g. major(70, tolerance: 0.8, timeframes: "1W 1D"). Or use use indicator "Major Levels" with minScore 70 as ml and read ml.belowScore.

#Settings

Open the settings with the slider icon next to the indicator (Indicators, F3). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.

#Detection

#Display

#Styles

#Outputs

These values can be used in Trade Setup triggers, filters and exits (see Trade Setup) and in WickScript.

#Use in WickScript

use indicator creates this indicator inside a script, with settings by their ID. Each output is a field of the name after as. See WickScript indicators.

wickscript 1
indicator "Major Levels from the list" on chart
use indicator "MajorLevels" with tolerance 0.5 as myMajorlevels
show myMajorlevels.above as line "above"