Pivot Point Reversal + RSI Strategy
Oct 20, 2019
The Pivot Point Reversal + RSI Strategy indicator combines price action pivot points with momentum filtering to identify high-probability trend reversal entries using stop orders.
Usage
The Usage section focuses on identifying structural pivot highs and lows to set entry levels. A long entry is triggered when a pivot high is established and the RSI at that time is below the overbought threshold, suggesting room for further upside. Conversely, a short entry is prepared when a pivot low is confirmed while the RSI is above the oversold threshold.
Example applications:
- Trend Reversals: Identify potential shifts in market structure on intraday timeframes like 30m or 1h.
- Breakout Confirmation: Use the RSI filter to avoid entering exhausted moves that are already deep into overbought or oversold territory.
Details
The script utilizes the ta.pivothigh() and ta.pivotlow() functions, which require a specific number of bars to the left and right to confirm a peak or valley. Because of the rightBars lookback required for confirmation, the strategy references the RSI value at the time the pivot occurred, ensuring the momentum context matches the price structure. Entries are executed via stop orders placed at the pivot price levels plus or minus one tick.
Settings
Pivot Points
- PP - Left Bars: The number of bars to the left required to detect a pivot.
- PP - Right Bars: The number of bars to the right required to confirm a pivot (introduces lag for confirmation).
RSI
- RSI - Length: The period used for the Relative Strength Index calculation.
- RSI - Overbought level: The maximum RSI threshold allowed for long entries.
- RSI - Oversold level: The minimum RSI threshold allowed for short entries.
FAQ
How do I use the Pivot Point Reversal + RSI Strategy?
The strategy automatically plots entry levels based on confirmed pivots. When the RSI conditions are met, stop orders are placed at the high/low of the pivot.
What timeframes are best for this strategy?
While it can be used on any timeframe, it is particularly effective on the 30m, 1h, and 2h charts for volatile assets like cryptocurrencies.
How can I access this tool?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
Trading & investing are risky and many will lose money in connection with trading and investing activities. All content on this site is not intended to, and should not be, construed as financial advice. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Past performance does not guarantee future results.
Hypothetical or Simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, including, but not limited to, lack of liquidity. Simulated trading programs in general are designed with the benefit of hindsight, and are based on historical information. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
As a provider of technical analysis tools and strategies, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole based on any content, tool, or platform feature we provide.
Charts used on this site are by TradingView in which the majority of our technical indicators are built on. TradingView® is a registered trademark of TradingView, Inc. www.TradingView.com TradingView® has no affiliation with the owner, developer, or provider of the Services described herein.
Market data is provided by CBOE, CME Group, BarChart, Massive, CoinAPI. Select U.S. equities data is provided through Massive. CBOE BZX real-time U.S. equities data is licensed from CBOE and provided through BarChart. Real-time futures data is licensed from CME Group and provided through BarChart. Select cryptocurrency data, including major coins, is provided through CoinAPI. All data is provided “as is” and should be verified independently for trading purposes.
This does not represent our full Disclaimer. Please read our full disclaimer.
© 2026 LuxAlgo Global, LLC.