SWING ATR Based

What does this indicator do?

1. It identifies Market Swings The script monitors price action to detect when a trend changes direction.

It uses ATR (Average True Range) to measure volatility, ensuring it doesn't get tricked by small, insignificant price movements.

To validate a change in direction (from bullish to bearish, or vice versa), it waits for the price to cover a specific distance (defined by the kRange parameter) and requires at least two significant candles.

2. It plots Support and Resistance zones As soon as a new high or low point is confirmed:

In Green (Bull): It draws a support line at the level of the last low.

In Red (Bear): It draws a resistance line at the level of the last high.

Auto-Cleaning: If the price breaks through a support line, the line turns gray and stops. The script only keeps active (unbroken) levels on the screen.

3. It calculates an "SGE Score" (Market State) This is the "brain" of the script. It assigns a rating to the current trend:

+2 (Bullish): The price has broken a resistance.

-2 (Bearish): The price has broken a support.

0 (Neutral): The market is indecisive (for example, after a break that contradicts the previous one).

Key Feature: This score has a "one-candle delay." It waits for the next candle to close before confirming a score change, which helps avoid reacting too quickly to false alerts.

4. It simplifies visual reading To keep your chart clean and readable:

It only highlights the 3 levels closest to the current price (those most likely to be hit soon).

It colors the chart candles directly: Green if the score is +2, Red if the score is -2, and Gray if it is neutral.

5. Dashboard In the top-right corner of your screen, it displays a permanent summary:

The current score (-2, 0, or 2).

The number of active supports and resistances.

Summary: This is a "smart" trend detector. Instead of just looking at whether the price is going up or down, it waits for the price to break important structural levels (confirmed by volatility) to tell you: "Caution, the structure has just shifted from bullish to bearish."

Recommended Settings:

kRange: 1.3 / 1.4

ATR Mult: 0.3 to 0.5

Script created with Claude AI.