Dynamic Double-Touch S&R Zones [V6]

This script is designed to identify high-probability Support and Resistance zones based on historical price retests. Unlike standard S&R indicators that draw simple lines, this tool identifies "Supply and Demand" areas by capturing the entire price action between the candle body and the wick extremity.

How it Works

1. Pivot Detection: The script identifies major price peaks and valleys using a customizable lookback period.
   
2. Confirmation (The Double-Touch): To keep the chart clean, a zone is only drawn after the price returns to a previous pivot level within a user-defined percentage threshold (Proximity Threshold).
   
3. Wick-Inclusive Zones: * Resistance: The zone covers the area from the highest candle body to the highest wick.
   
4. Support: The zone covers the area from the lowest candle body to the lowest wick.
   
5. Dynamic Extension: Zones automatically extend to the current bar, providing a "live" look at where price is currently interacting with historical levels.
   

Key Features

• Cleaner Charts: Only displays zones that have been validated by at least two touches.
  
• Custom Sensitivity: Adjust the Proximity Threshold to find exact matches or broader "zones" of interest.
  
• Pine Script V6: Built with the latest TradingView standards for optimal performance and compatibility.
  

How to Trade with This

• Area of Interest: Watching for reversal candlestick patterns (like pin bars or engulfing candles) when price enters a zone.
  
• Target Levels: Using historical zones as potential take-profit targets for existing trades.
  
• Market Structure: Observing if a zone holds or is broken with high volume to determine trend strength.
  

Disclaimer: This script is for educational and informational purposes only and does not constitute financial advice. Always perform your own due diligence.