This indicator draws support and resistance areas in the chart. There are 4 different types of possible supports and resistances, which are differentiated by various colors.
Support due to a lower high (ColorLowerHigh)
Support due to a lower low (ColorLowerLow)
Resistance due to a higher high (ColorHigherHigh)
Resistance due to a higher low (ColorHigherLow)
S/R zones play an important role in technical analysis. Clearly defined and identifiable support areas provide favorable entry opportunities, while resistance areas provide target zones to exit those trades. Once broken, these areas tend to reverse their function, meaning that a broken support zone becomes a resistance zone.