RH M2 Support, Resistance #2

15 ore fa

This is the Invite-Only version of RH M2 Support, Resistance.
Thank you for using RH M2 Support, Resistance since April 2023!
Starting January 1, 2026, this indicator will only be available in Invite-Only mode.
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9 ore fa

Note di rilascio

RH M2 Support, Resistance
Overview

The RH M2 Support, Resistance is a precision price-action tool designed to automatically detect M2 candles — one of the core structural formations used in advanced price-action trading.
The indicator identifies both bullish (long) and bearish (short) M2 setups and maps the corresponding M2-based support and resistance zones, allowing traders to instantly visualize institutional reaction points on the chart.

This tool eliminates subjective interpretation and gives traders a clear, rule-based framework for detecting trend reversals, continuation opportunities, and liquidity-driven market structures.

How the Indicator Works
The indicator scans every candle and evaluates it based on the M2 definitions:

Negative M2 Candle (for Long Setups)
A candle is classified as a negative M2 when:
Its close is below 50% of its total range, regardless of color.
It represents the last counter-trend candle before an upward movement.
This candle becomes the anchor for a potential long setup
— the market’s final “push down” before reversing higher.

Positive M2 Candle (for Short Setups)
A candle is classified as a positive M2 when:
Its close is above 50% of its total range, regardless of color.
It represents the last counter-trend candle before a downward movement.
This candle becomes the anchor for a potential short setup
— the final “push up” before the market rotates downward.

M2 Confirmation Logic
After an M2 candle is detected, the indicator automatically checks for a confirmation candle:

Bullish Confirmation
A candle that closes entirely above the body of the negative M2 candle.
When detected, the indicator labels an actionable Long M2 Setup, including:
Entry level at the high of the M2 candle
Stop-loss level below the low of the M2 candle

Bearish Confirmation
A candle that closes entirely below the body of the positive M2 candle.
When detected, the indicator labels a Short M2 Setup, including:
Entry level at the low of the M2 candle
Stop-loss level above the high of the M2 candle

M2-Based Support and Resistance Zones
Each M2 candle defines a structural zone used by the market as a reaction point.
The indicator automatically draws and updates these zones in real time.

For Long M2 Setups
The negative M2 candle forms a support zone between:
Its high (upper boundary)
Its low (lower boundary)

Why this works:
The final bearish candle before reversal often marks the area where liquidity was taken and buyers entered aggressively.
This zone frequently acts as:
a retest area,
a demand zone,
or a continuation support in trending conditions.

For Short M2 Setups

The positive M2 candle forms a resistance zone between:
Its high
Its low
Because this candle typically captures upside liquidity before a downward move, its structure often acts as:
a bearish retest zone,
a supply zone,
or a continuation resistance level.

Trading Applications
The M2 Indicator can be used for:

Reversal Trading
Detecting turning points where the market shifts direction after sweeping liquidity.

Trend Continuation Entries
M2 zones often act as ideal pullback areas in trending markets.

Liquidity-Based Trading
M2 candles commonly appear where stops are taken — a natural area for institutional activity.

Support/Resistance Mapping
Clear, automated, non-subjective S/R zones built directly from price action.

Multi-Timeframe Confluence
Higher timeframe M2 zones can be used as strong swing areas; lower timeframes help time precise entries.

Key Benefits
Objective M2 classification — no more guessing whether a candle qualifies.
Consistent identification of both bullish and bearish setups.
Automatic confirmation logic, including valid entry and stop levels.
Dynamic support & resistance zones based on true market structure.
Works on all markets (Forex, Indices, Crypto, Commodities, Stocks).
Ideal for both discretionary and rule-based trading systems.

Summary
The M2 Candle Indicator transforms a sophisticated price-action concept into a clean, rules-driven, visually intuitive TradingView indicator. By detecting valid M2 candles, confirming setups, and mapping structural zones, it gives traders a reliable insight into key market turning points and liquidity zones — all without manual chart marking or subjective interpretation.