Market Mood | Smart Support & Resistance Market Mood | Smart Support & Resistance is a rule-based market structure and displacement indicator designed to identify confirmed demand and supply zones.
Unlike traditional support and resistance tools that draw levels around every swing, this indicator requires multiple conditions before creating a zone.
HOW IT WORKS
The indicator:
• Builds a normalized sequence of alternating swing highs and swing lows.
• Evaluates the latest structure using configurable ABCD proportions.
• Waits for price to break the relevant structure level.
• Confirms the breakout using either a candle close or wick, with an optional ATR buffer.
• Searches for a qualified directional impulse measured against the confirmed Average Daily Range.
• Uses the final opposing candle before the impulse as the origin of the zone.
ZONE DISPLAY
Green zones represent active demand areas.
Orange zones represent active supply areas.
Each zone remains extended until price closes beyond its ATR-adjusted invalidation level. Invalidated zones stop extending and remain visible with reduced opacity for historical reference.
QUALITY SCORE
Every new zone includes a Q score from 0 to 100.
The score evaluates:
• Impulse strength relative to the required threshold.
• Breakout distance relative to ATR.
• Zone width relative to current volatility.
The Q score is a relative quality measurement. It is not a win rate, probability forecast, or guarantee of future performance.
RISK PROFILES
High Risk produces more frequent and responsive zones.
Medium Risk provides a balanced level of confirmation.
Low Risk applies stricter swing, impulse, and confirmation requirements.
DASHBOARD
The Market Mood dashboard displays:
• Current symbol and timeframe.
• Selected risk profile.
• Breakout confirmation mode.
• Confirmed daily ADR.
• Minimum required impulse.
• Number of active demand and supply zones.
ALERTS
Alerts are available for:
• New demand zones.
• New supply zones.
• First demand-zone retests.
• First supply-zone retests.
• Demand-zone invalidations.
• Supply-zone invalidations.
IMPORTANT
Swing pivots require confirmation bars, so zones appear only after the structure and breakout conditions have been confirmed.
This indicator identifies areas of market interest. It does not provide automatic trade entries, stop-loss placement, or guaranteed trading outcomes.
Always combine technical analysis with appropriate risk management.
© MarketM00d — Smart Market Signals
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