Strong Levels (with Proximity Alerts)

█ OVERVIEW

The "Strong Levels (with Proximity Alerts)" indicator offers a fresh approach to identifying support and resistance levels, inspired by the RexDog Trading System (RDTS). It pinpoints significant price reversals using a unique filtering method that reduces noise and enhances reliability. Paired with customizable ATR-based proximity alerts, this indicator empowers traders to track critical price zones with precision.

█ FEATURES

- Rooted in RDTS:
Inspired by the RexDog Trading System (RDTS), it highlights major pivot points where price executed sharp turnarounds, ensuring levels carry true market weight.
- Second-Highest/Lowest Open/Close Method:
Resistance levels use the *second-highest open/close* near pivot highs, while support levels use the *second-lowest open/close* near pivot lows—skipping extreme wicks for cleaner, more dependable lines.
- ATR-Driven Proximity Alerts:
Customizable proximity thresholds, calculated using the Average True Range (ATR), warn traders when price approaches key levels—a standout feature not found in most support/resistance indicators.
- Flexible Customization:
- Magnitude: Tweak pivot sensitivity (default: 10).
- Line Colors: Set resistance (red by default), support (green), and proximity (yellow) lines.
- Line Options: Adjust line origins, transparency for breached levels, and the maximum number of levels shown.
- ATR Settings: Fine-tune proximity sensitivity with ATR length and multiplier.

█ HOW TO USE

1. Add to Chart:
Find "Strong Levels (with Proximity Alerts)" in TradingView’s indicator library and apply it.
2. Read the Lines:
- Red Lines: Resistance, derived from the second-highest open/close near pivot highs.
- Green Lines: Support, based on the second-lowest open/close near pivot lows.
- Yellow Dashed Lines: Proximity thresholds (optional), signaling when price nears a level.
3. Customize:
- Raise `Magnitude` for stronger levels or lower it for more detail.
- Adjust colors, transparency, and max levels to fit your preferences.
- Toggle proximity thresholds on/off based on your trading style.
- Enabling *Plot Line from Actual Pivot Bar* offers a cleaner chart but may mislead as lines plot into the past.
4. Set Alerts:
- Open TradingView’s alert menu (the three dots ... dropdown menu next in indicator list has an option "Add alert on ...") and choose "Approaching Level" or "Level Touched.".
- Don't forget to choose the right Trigger condition, which by default is "Only Once". I usually set it to "Once Per Bar".
- Tailor alert conditions to your needs.

█ LIMITATIONS

- Past-Based Levels:
- Relying on historical pivots, it may not always forecast future moves, especially in rapid markets.
- The 'Plot Line from Actual Pivot Bar' option while visually appealing can imply historical significance that didn’t exist at the time. Be mindful of that.
- Volatility Sensitivity:
High volatility widens ATR-based thresholds, which might trigger alerts too soon.
- Display Management:
A cap on max levels avoids clutter, but tweaking `Max Levels` may be needed across timeframes.

█ ACCOMPANYING CHART

The chart showcases the indicator’s unique edge:
- A pivot high and low are flagged, with nearby bars highlighted.
- Resistance is plotted at the *second-highest open/close* around the pivot high, bypassing the highest wick.
- Support is set at the *second-lowest open/close* near the pivot low, ignoring the deepest wick.
- Yellow dashed proximity lines illustrate how the indicator warns traders as price nears these zones.
- Annotations clarify how skipping extreme wicks creates cleaner, more actionable levels.

█ HOW TO USE

1. Add to Chart:
Locate "Strong Levels (with Proximity Alerts)" in TradingView’s indicator library and apply it to your chart.
2. Read the Lines:
- Red Lines**: Resistance levels, calculated from the second-highest open/close near pivot highs.
- Green Lines: Support levels, derived from the second-lowest open/close near pivot lows.
- Yellow Dashed Lines: Optional proximity thresholds, alerting you when price nears a level.
3. Customize:
- Increase `Magnitude` for stronger, less frequent levels or decrease it for more granularity.
- Modify colors, transparency, or the maximum number of levels to suit your style.
- Enable or disable proximity thresholds as needed.
4. Set Alerts:
- Access TradingView’s alert menu and select "Approaching Level" or "Level Touched."
- Adjust conditions to match your trading preferences.
5. My Personal Approach:
I prefer using this indicator on higher timeframes, like hourly or daily charts. I adjust my `Magnitude`, so it doesn't trigger too often and set my alerts to trigger "Once Per Bar". When price nears a level, I get an alert and I anticipate a reaction but avoid placing limit orders blindly. Instead, I switch to smaller timeframes and combine it with other tools for confirmation before making a trade. This saves me a lot of screen time, and allows me to focus when it matters.