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Simple Smart Zones

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Purpose of the Indicator:
This indicator is designed to automatically detect and plot support and resistance zones by analyzing historical price action. It works by dividing the past price data into sections and calculating the average price in each section — these averages represent key price levels where market activity (buying/selling) likely clustered.

⚙️ How It Works:
Selects a Historical Window:
The user sets a number of past candles (barsBack) to analyze (default: 100).

Divides the Window into Equal Parts:
The selected period is split into zoneCount sections (default: 3).

Calculates the Average Price in Each Section:
For each section, the script computes the average closing price — this becomes the level where price was most frequently accepted during that section.

Plots Horizontal Lines (Zones):

Each average price is drawn as a horizontal line on the chart.

If the zone is below the current price → it's colored green (likely support).

If the zone is above the current price → it's colored red (likely resistance).

🎯 What the Zones Mean:

Color Meaning Interpretation
🟢 Green Support Zone Price is above it; could bounce if revisited.
🔴 Red Resistance Zone Price is below it; may struggle to break through.
📌 Indicator Inputs:

Input Description
barsBack How many historical candles to analyze.
zoneCount How many zones to calculate and display.
transp Transparency of the lines (0 = solid, 100 = invisible).
🧠 How to Use It in Trading:
Entry Ideas:

Buy near green lines (support), especially if price bounces from them.

Sell near red lines (resistance), especially if price fails to break them.

Exit Ideas:

Use red zones as profit targets for long positions.

Use green zones as targets for short positions.

Add Confirmation:

Combine with RSI, Volume, or Candlestick Patterns for stronger setups.

✅ Why This Version is Reliable:
No errors.

No complex structures like arrays or custom functions.

Works on any symbol, any timeframe.

Designed to be lightweight and fast.

Declinazione di responsabilità

Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.