Multi-Source Support/Resistance Zone Fusion

Install and import#

npm install fintech-algorithms

import { multiSourceSupportResistanceZoneFusion } from "fintech-algorithms/geometric-chart-patterns/level-confluence-and-zone-scoring/multi-source-support-resistance-zone-fusion";

Signature#

multiSourceSupportResistanceZoneFusion(input)

Clusters nearby levels, computes deterministic zone centers, and separates accepted multi-source zones from rejected clusters.

Parameters#

Returns#

{ state, zones, rejected_clusters, fusion_tolerance, minimum_sources }

One calculated fusion record with ranked accepted zones and reason-coded rejected clusters.

Errors#

• When levels are empty, identities repeat, source/price/weight fields are invalid, or fusion settings are invalid — throws

Complexity: time , space .

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

{
  "fusion_tolerance": 0.25,
  "minimum_sources": 2,
  "levels": [
    {
      "level_id": "PIV-1",
      "source": "pivot",
      "price": 99.8,
      "weight": 0.9
    },
    {
      "level_id": "FIB-1",
      "source": "fibonacci",
      "price": 100.1,
      "weight": 0.7
    },
    {
      "level_id": "RND-1",
      "source": "round-number",
      "price": 100,
      "weight": 0.8
    }
  ]
}

Call#

multiSourceSupportResistanceZoneFusion(input)

Returns#

object with 5 fields: state, zones, rejected_clusters, fusion_tolerance, minimum_sources

{
  "state": "calculated",
  "zones": [
    {
      "zone_id": "Z01",
      "lower": 99.55,
      "upper": 100.45,
      "center": 100.026470588235,
      "source_count": 4,
      "sources": ["fibonacci", "pivot", "round-number", "volume-profile"],
      "weight_sum": 3.4,
      "member_ids": ["PIV-1", "RND-1", "FIB-1", "VOL-1"]
    }
  ],
  "rejected_clusters": [
    {
      "zone_id": "Z02",
      "lower": 104.75,
      "upper": 105.25,
      "center": 105,
      "source_count": 1,
      "sources": ["pivot"],
      "weight_sum": 0.6,
      "member_ids": ["PIV-2"],
      "reason": "insufficient-distinct-sources"
    }
  ],
  "fusion_tolerance": 0.25,
  "minimum_sources": 2
}

Other exports#

This module also exports calculate, priceByVolumeProfileConstruction, pocValueAreaHvnLvnDetection, fibonacciRetracementExtensionProjection, psychologicalRoundNumberLevelGeneration, supportResistanceZoneStrengthDecayScoring, supportResistanceRoleReversalStateMachine, breakoutAndRetestDetection, marketWideZoneProximityScannerRanking. Every module additionally exports run as an alias of its primary function, and a meta object carrying its catalog id, domain, family, shape and article URL.

Diagrams#

Calculation flow#

flowchart LR
    S1["Validate candidate IDs source families prices weights "]
    S2["Sort candidates deterministically by price source and "]
    S3["Start a new cluster whenever diameter would exceed twi"]
    S4["Compute bounds members sources and weighted or unweigh"]
    S5["Apply the distinctsource minimum and rank eligible zon"]
    S1 --> S2
    S2 --> S3
    S3 --> S4
    S4 --> S5
    S5 --> D{"cluster diameter may not exceed twice the fusion tolerance"}
    D --> O["zones + diagnostics"]
    O --> A["Audit: The output is a deterministic function of validated inputs"]

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

• Volume profile indicators: basic concepts — TradingView
• Auto Fib Retracement — TradingView
• Currency Orders and Exchange-Rate Dynamics: Explaining the Success of Technical Analysis — Carol L. Osler
• Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation — Andrew W. Lo, Harry Mamaysky, and Jiang Wang
• Evidence boundary

The rest of the Level Confluence and Zone Scoring family#

• Price-by-Volume Profile ConstructionAggregates eligible point-in-time trades into deterministic tick-aligned price-by-volume bins.
• Point of Control, Value Area, HVN, and LVN DetectionSelects the point of control, expands a deterministic value area, and identifies local high- and low-volume nodes.
• Fibonacci Retracement and Extension ProjectionProjects declared retracement and extension ratios from a directed price leg and snaps every level to the nearest tick.
• Psychological Round-Number Level GenerationGenerates tick-aligned round-number levels inside explicit bounds and labels their salience and distance from current price.
• Support/Resistance Zone Strength and Decay ScoringScores zone strength from source confluence, decayed touches, rejection quality, durability, and break penalties.
• Support/Resistance Role-Reversal State MachineProcesses closes through active-role, break, retest, confirmation, and invalidation transitions for one zone.
• Breakout and Retest DetectionProcesses bars through breakout-pending, retest, confirmation, failure, and expiry states around one zone.
• Market-Wide Zone-Proximity Scanner and RankingFilters point-in-time zone records by proximity and ranks eligible instruments from proximity, strength, and freshness.