INVITE-ONLY SCRIPT
Malaysian SnR Levels
Updated
This indicator can be used to display support and resistance levels in accordance with Malaysian SnR, in which Support and Resistance are not areas in a chart but clear levels of a line chart. The term line chart refers the current chart in Tradingview as type Line (not Candles) with it's peaks and valleys.
There are 3 different horizontal levels in Malaysian SnR:
The levels are shown as horizontal lines and mark Support when they are below the current price and Resistance when they are above it.
What makes the indicator so special is that conventional support and resistance indicators only use ranges, but Malaysian SnR uses clear and accurate levels at the peaks and valleys (and gaps), which can be of the state Fresh or Unfresh. But what does this state mean and how is it displayed in this indicator?
A level is designated as fresh if it has either not yet been tested, i.e. it has not been touched by a wick. If a level was no longer fresh, it can become fresh again if it is crossed by the body of a candle. If it is then touched by a wick again afterwards, it is considered unfresh (tested) again.
If a level is fresh, the theory of Malaysian SnR assumes that there is a greater probability that the price will react at that level and move in the opposite direction because this fresh Support / Resistance level is more significant than an unfresh level.
The indicator is calculating this state and displays the levels then in a different way. Fresh levels are displayed as solid lines, unfresh levels are displayed as dashed lines. It is also possible to hide unfresh levels, so that only the fresh levels are visible in the chart.
The Fresh-state of a level would be very hard to see without it the indicator:
If the script would just display all the levels that can be found for the Bars Lookback period, the chart woulkd still be full of levels. To filter this and display the most relevant levels, you can use the options Levels above/below price (number of levels) so that only the levels are displayed that are the closest ones to the current price.
Parameters of the indicator
How to trade with Malaysian SnR levels?
One way to trade with these levels is for instance to wait on a higher timeframe like the Daily til price is reaching a fresh level. At this point a trader could switch to a lower timeframe to check if price is reacting at this level, which is when price is moving into the opposite direction.
So reaching a level of Support and then see price moving to the upside on a lower timeframe can be used as a buy signal - on the other hand if price is reaching a level of Resistance and then moving away from it to the downside on a lower timeframe, this can be used as a sell signal.
There are 3 different horizontal levels in Malaysian SnR:
- A-Level: This level is located at the peak of this line chart. It is named so because this peak has the shape of the letter A.
- V-Level: Level at the valley of a line chart, which reminds of the letter V.
The A- and V-Levels are formed for the current chart / timeframe and you can define with the parameter Bars Lookback how many candles will be taken into account for adding the levels. - Gap level: This level is located at the Close/Open gap between two candles of the same color. The period for these levels is also defined by the option Bars Lookback.
The levels are shown as horizontal lines and mark Support when they are below the current price and Resistance when they are above it.
What makes the indicator so special is that conventional support and resistance indicators only use ranges, but Malaysian SnR uses clear and accurate levels at the peaks and valleys (and gaps), which can be of the state Fresh or Unfresh. But what does this state mean and how is it displayed in this indicator?
A level is designated as fresh if it has either not yet been tested, i.e. it has not been touched by a wick. If a level was no longer fresh, it can become fresh again if it is crossed by the body of a candle. If it is then touched by a wick again afterwards, it is considered unfresh (tested) again.
If a level is fresh, the theory of Malaysian SnR assumes that there is a greater probability that the price will react at that level and move in the opposite direction because this fresh Support / Resistance level is more significant than an unfresh level.
The indicator is calculating this state and displays the levels then in a different way. Fresh levels are displayed as solid lines, unfresh levels are displayed as dashed lines. It is also possible to hide unfresh levels, so that only the fresh levels are visible in the chart.
The Fresh-state of a level would be very hard to see without it the indicator:
If the script would just display all the levels that can be found for the Bars Lookback period, the chart woulkd still be full of levels. To filter this and display the most relevant levels, you can use the options Levels above/below price (number of levels) so that only the levels are displayed that are the closest ones to the current price.
Parameters of the indicator
- Line Color: Line color of the levels
- Line Width: Thickness of the levels
- Display gap levels: Should the Gap-Levels be displayed or not
- Display fresh levels only: Should unfresh / tested levels be hidden in the chart
- Bars Lookback: Number of bars lookback period at which levels will be added to the chart
- Levels Above Price: Number of levels that should be displayed above the price. It will be the closest levels to the price that can be found.
- Levels Below Price: Number of levels that should be displayed below the price. It will be the closest levels to the price that can be found.
- Timeframe Limit: Indicator will only be visible for this timeframe and above.
How to trade with Malaysian SnR levels?
One way to trade with these levels is for instance to wait on a higher timeframe like the Daily til price is reaching a fresh level. At this point a trader could switch to a lower timeframe to check if price is reacting at this level, which is when price is moving into the opposite direction.
So reaching a level of Support and then see price moving to the upside on a lower timeframe can be used as a buy signal - on the other hand if price is reaching a level of Resistance and then moving away from it to the downside on a lower timeframe, this can be used as a sell signal.
Release Notes
New settings:- Timeframe: The timeframe for calculating the SNR levels. This means that you can display for instance Higher Timeframe SNR levels on a Lower Timeframe chart.
- Evaluate current bar: If this is set to true, the current bar is used to evaluate the freshness state of levels. This setting refers to the bar of the timeframe used in the setting above.
Use-case:
If the market is closed and the last candle does not move, this setting can be set to true, as when the market is closed, a snapshot of the market can be analyzed in which the last bar contributes to the state of the levels, as it no longer changes.
If the candle moves, i.e. the market is open, it may make sense to set the setting to false in order not to influence the freshness state of the levels, as they are only valid when the last candle is closed.
Release Notes
Bugfix: Lookahead for Timeframe request used.Release Notes
New setting:Evaluate current bar if market is closed: If this is set to true, the current bar is taken into account for calculation of freshness state of SNR levels, if the market is closed. It can be overridden using the option Evaluate current bar, to use the current bar for calculation of the level's freshness in any case, no matter if the market is open or closed.
Release Notes
Bugfix: Don't add an SNR level if the last realtime candle is a part of build the V or A shape.Release Notes
Bugfix: Evaluation of lastbar was not evaluated correctly when market is closed.Release Notes
Bugfix: Add Gap level for last bar only if market is closedRelease Notes
Setting "Level Regions" added:Select of you like to search for levels above / below the current price or above / below the current bar's high / low (Timeframe of this bar is the selected timeframe of the indicator)
Release Notes
Bugfix: Add G-Level before last bar only if the setting Evaluate Current Bar is set to true.Release Notes
Added new options:- Max Level Break: If a level is broken - bars closed above or below it - more often than this number, it is regarded as irrelevant and not displayed. The number is displayed as label above the level.
- Display number of level breaks: Display the number above the levels or not.
Release Notes
Feature Display Opening Gaps added: For a level the gap between Closing price of the first candle and the Opening price of the next candle is displayed as a semi-transparent box.Release Notes
Bugfix: Opening price Gap box is painted only now if timeframe of the chart is <= the timeframe for the SNR levels.Invite-only script
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