SR DYNAMIC V2 Trading Guide

The Support Resistance - Dynamic v2 is an advanced structural indicator that automatically detects pivot highs and lows, clustering them into significant support and resistance zones based on market width. It draws clear, actionable horizontal levels on the chart, calculates their relative strength, and dynamically tracks when price breaks through them.

What does the indicator show?

• S/R Lines: Solid or dashed horizontal lines representing clustered pivot zones. Resistance lines (above price) are typically red, while support lines (below price) are green.
• Level Labels: Information boxes attached to each line displaying the exact price level and the percentage distance from the current market price.
• Pivot Points (Optional): Small "H" and "L" markers printed directly on the chart candles that formed the underlying structure for the S/R levels.

Key Settings

• Pivot Period: The lookback period used to identify structural highs and lows. A higher number finds macro levels; a lower number finds micro levels.
• Max Pivot Count & Max S/R Levels: Controls how many historical pivots are tracked and what the maximum number of active S/R lines displayed simultaneously can be.
• Max Channel Width %: Defines how tightly pivots must cluster together to be merged into a single, stronger Support/Resistance zone.
• Min Strength: The minimum number of touching pivots required for a line to be drawn. Increasing this filters out weak or untested levels.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.

1. Breakouts and Breakdowns

Detecting when the price violently leaves an established zone.

• Resistance Broken — Triggers when the closing price crosses above any active SRv2 level.
• Support Broken — Triggers when the closing price crosses below any active SRv2 level.

Strategy Example: For a momentum breakout strategy, you can use Resistance Broken is True as a primary entry signal, confirming that overhead supply has been absorbed.

2. Proximity and Reversals

Using the levels dynamically to gauge trend exhaustion.

• Support Level / Resistance Level — The exact price values of the nearest support and resistance relative to the current price.
• Distance to Support % / Distance to Resistance % — The calculated percentage space remaining before price hits the nearest level.

Strategy Example: To prevent buying at the top of a range, add an entry filter requiring Distance to Resistance % > 2.0. This ensures your trade has enough "room to run" before hitting structural friction.