Institutional Support/Resistance Locator

🏛️ Institutional Support/Resistance Locator

Overview

The Institutional Support/Resistance Locator identifies high-probability demand and supply zones based on strong price rejection, large candle bodies, and elevated volume. These zones are commonly targeted or defended by institutional participants, helping traders anticipate potential reversal or continuation areas.

⸻

How It Works

The indicator uses a confluence of conditions to detect zones:
• Large Body Candles: Body size must exceed the moving average body size multiplied by a user-defined factor.
• High Volume: Volume must exceed the moving average volume by a configurable multiplier.
• Wick Rejection: Candles must show strong upper or lower wicks indicating aggressive rejection.
• If all criteria are met:
• Bullish candles form a Demand Zone.
• Bearish candles form a Supply Zone.

Each zone is plotted for a customizable number of future bars, representing areas where institutions may re-engage with the market.

⸻

Key Features
• ✅ Highlights institutional demand and supply areas dynamically
• ✅ Customizable sensitivity: body, volume, wick, padding, and zone extension
• ✅ Zones plotted as translucent regions with auto-expiry
• ✅ Works across all timeframes and markets

⸻

How to Use
• Trend Traders: Use demand zones for potential bounce entries in uptrends, and supply zones for pullback short entries in downtrends.
• Range Traders: Use zones as potential reversal points inside sideways market structures.
• Scalpers & Intraday Traders: Combine with volume or price action near zones for refined entries.

Always validate zone reactions with supporting indicators or price behavior.

⸻

Why This Combination?

The combination of wick rejection, volume confirmation, and large candle structure is designed to reflect footprints of smart money. Rather than relying on fixed pivots or subjective zones, this logic adapts to the current market context with statistically grounded conditions.

⸻

Why It’s Worth Using

This tool offers traders a structured way to interpret institutional activity on charts without relying on guesswork. By plotting potential high-impact areas, it helps improve reaction time.

⸻

Note:
• This script is open-source and non-commercial.
• No performance guarantees or unrealistic claims are made.
• It is intended for educational and analytical purposes only.