Reaction Zone Ledger [JOAT]Reaction Zone Ledger is an open-source Pine Script v6 overlay that creates pivot-based support and resistance reaction zones, tracks signed volume pressure inside those zones, merges nearby zones, and displays compact statistics directly beside each active area.
The script is built for traders who want reaction zones to contain more information than a simple box. Each zone stores pressure, net impulse, touch count, state, and a dashed midpoint. The dashboard summarizes the broader signed-volume ledger and the nearest active zone.
Core Concepts
1. Signed Volume Proxy
Each bar receives a signed volume estimate from candle body bias and close location. This is not true buyer/seller volume; it is a transparent approximation from OHLCV data.
bodyBias = barRange > 0.0 ? (close - open) / barRange : 0.0
closeBias = barRange > 0.0 ? (((close - low) / barRange) - 0.5) * 2.0 : 0.0
signedVolume = volume * clamp(bodyBias * 0.62 + closeBias * 0.38, -1.0, 1.0)
2. Pivot Reaction Zones
Confirmed pivot highs create resistance-style zones. Confirmed pivot lows create support-style zones. The width is based on ATR so the zones scale with current chart volatility.
3. Merge Logic
When a new zone is close to an existing zone on the same side, the script merges them rather than stacking overlapping boxes. This keeps the chart cleaner and improves object efficiency.
4. Zone Ledger Statistics
Each zone tracks buy pressure, sell pressure, hit count, net impulse, and state. A small outside stats box displays the current pressure reading and net value.
5. Dashboard Summary
The dashboard shows overall ledger pressure, net impulse, nearest zone type, and nearest zone state.
Features
Pivot support and resistance zones: Zones are created from confirmed pivots
ATR-based width: Zone size adapts to volatility
Merge system: Nearby same-side zones combine into larger active areas
Signed-volume ledger: Tracks directional pressure using a transparent OHLCV proxy
Stats boxes: Pressure percentage, net impulse, and state displayed beside zones
Dashed midlines: Each zone has a center reference line
Dashboard: Shows active zone count and nearest zone context
Alerts: Support reaction, resistance reaction, and zone break
Input Parameters
Visuals:
Palette: Selects color pair
Show Dashboard: Toggles the top-right dashboard
Zones:
Pivot Left Bars / Pivot Right Bars: Pivot confirmation settings
Range Length: ATR length for zone sizing
Zone Half-Width ATR: Controls box thickness
Merge Distance ATR: Controls when nearby zones merge
Maximum Zones: Limits active object count
Forward Extension: Bars each zone extends forward
Ledger Impulse Length: Lookback for dashboard impulse stats
How to Use This Indicator
Step 1: Locate Active Zones
Green-style zones represent support reactions. Red-style zones represent resistance reactions.
Step 2: Read the Stats Box
The outside box shows whether the zone is testing, holding, cleared, lost, or mixed, along with its pressure value.
Step 3: Watch Break Alerts
A break alert means price closed beyond the zone boundary after previously trading around it.
Step 4: Use Nearest Zone Context
The dashboard helps identify whether price is closest to support or resistance and what state that zone is in.
Indicator Limitations
Signed volume is an approximation from OHLCV data
Pivot zones appear only after pivot confirmation
Merged zones can become wide during repeated tests
Zone pressure can change quickly when high-volume bars touch the zone
Originality Statement
Reaction Zone Ledger is original in its combination of confirmed pivot zones, merge logic, signed-volume accounting, outside stats boxes, and nearest-zone dashboard. It is original Pine v6 code and does not reuse another author's indicator source.
Disclaimer
This script is provided for educational and informational use only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss. Reaction zones can fail, widen, or become less useful in fast markets. Always use independent analysis and proper risk management.
-Made with passion by jackofalltrades
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