MRC (Multi-Range Channel)

MRC (Multi-Range Channel) is a multi-level volatility channel indicator that calculates three pairs of support and resistance levels based on price range analysis. It creates a hierarchical channel structure where R1/S1 are the nearest levels, R2/S2 are intermediate, and R3/S3 are the outermost boundaries. This multi-level approach helps traders identify different strength zones for potential price reactions.

MRC calculates multiple support and resistance levels based on the range of price action over a specified period:

Range   = Highest High(N) - Lowest Low(N)
Midline = (Highest High(N) + Lowest Low(N)) / 2

R1 = Midline + Range * 0.25    S1 = Midline - Range * 0.25
R2 = Midline + Range * 0.50    S2 = Midline - Range * 0.50
R3 = Midline + Range * 0.75    S3 = Midline - Range * 0.75

The levels are proportionally distributed within the price range, creating a structured grid of support and resistance zones.

• Multi-level structure — Three levels of support and resistance for different scenarios
• Range-based — Adapts to current price range automatically
• Hierarchical zones — Inner levels (R1/S1) for scalping, outer levels (R3/S3) for swing trades
• Symmetrical — Equal distribution above and below the midline

Buy signals

• Price bounces off S1 level (minor support hold)
• Price bounces off S2 level (moderate support hold)
• Price bounces off S3 level (strong support — deep discount)
• Price breaks above R1 (momentum confirmation)

Sell signals

• Price rejects from R1 level (minor resistance)
• Price rejects from R2 level (moderate resistance)
• Price rejects from R3 level (strong resistance — extended move)
• Price breaks below S1 (momentum shift bearish)

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of candles for range calculation |

| Component | Description | |-----------|-------------| | MRC_R1(20) | First resistance level (nearest) | | MRC_S1(20) | First support level (nearest) | | MRC_R2(20) | Second resistance level (intermediate) | | MRC_S2(20) | Second support level (intermediate) | | MRC_R3(20) | Third resistance level (outermost) | | MRC_S3(20) | Third support level (outermost) |

| Condition | Description | |-----------|-------------| | close > MRC_R1(20) | Price above first resistance | | close < MRC_S1(20) | Price below first support | | close cross_over MRC_R2(20) | Breakout above second resistance | | close cross_under MRC_S2(20) | Breakdown below second support | | close > MRC_R3(20) | Price above outermost resistance (extreme) | | close < MRC_S3(20) | Price below outermost support (extreme) |

• Use S1/R1 levels for intraday or scalping entries, S3/R3 for swing trade targets
• Price reaching R3 or S3 is relatively rare — these are high-probability reversal zones
• The midline acts as a pivot point — persistent trading above/below it indicates trend bias
• Combine with volume analysis: breakouts of R/S levels on high volume are more reliable
• MRC works well alongside traditional pivot points for confluence analysis
• Consider the previous period's channel for initial bias at market open