Pivot Points High Low & Missed Reversal Levels

February 17, 2022

Pivot Points High/Low, sometimes referred to as "Bar Count Reversals" allows highlighting market prices local tops and bottoms. This method compares the price value at a certain index within a user-specified window length and tests whether it is the highest ( pivot high) or lowest ( pivot low).

Pivot Points High/Low, sometimes referred to as "Bar Count Reversals" allows highlighting market prices local tops and bottoms. This method compares the price value at a certain index within a user-specified window length and tests whether it is the highest ( pivot high) or lowest ( pivot low).

This method can return successive pivots of the same type, thus missing certain reversals, as such, we aimed to highlight those missed reversals and provide a level at their location to determine if they had any significant role to play. A zig-zag is additionally built, connecting regular pivots with missed reversals.

Settings

  • Pivot Length: Determine the "Bar Count Reversals" window size. higher values will highlight more significant reversals.
  • Other settings control the look of the displayed graphical elements within the indicator.

Usage

Missed reversals are highlighted by labels with a ghost emoji, a Zig-Zag line connecting a missed reversal is dashed. Note that labels are offset by -Pivot Length bars (with the exception of the most recent one), and as such are detected further ahead of their location.

When a missed reversal is detected, a level is displayed, starting at the location of the missed reversal and ending when a new missed reversal is detected.

These levels can be used as support and resistance .

The most recent label estimates the possible location of a confirmed reversal, and will continuously readjust whether price makes a new higher high/lower low depending on the type of previously detected pivot . A level is also made out of this estimated reversal.

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