RSI Pivot Break System + TP/SL

The RSI Pivot Break System + TP/SL indicator identifies price pivots filtered by RSI momentum to generate breakout signals accompanied by automated Stop Loss and Take Profit levels. By combining classic pivot analysis with overbought and oversold conditions, the tool focuses on significant market extremes and provides a complete trade setup visualization.

Usage

The Usage section describes how the script can be used to identify market structure shifts and manage trades. Users can apply the indicator to detect local support and resistance levels that are only confirmed when price momentum is extended.

• Breakout Signals: A bullish signal is generated when price closes above a resistance level (Pivot High) confirmed by overbought RSI. A bearish signal occurs when price closes below a support level (Pivot Low) confirmed by oversold RSI.
• Trade Management: Upon a breakout, the indicator plots an entry line, a Stop Loss (SL), and up to three Take Profit (TP) levels based on user-defined Risk-Reward ratios. The visualization includes colored risk and reward zones for easier position monitoring.
• Filtering: Use the optional RSI signal filter to prevent "chasing" moves. For example, the tool can block BUY signals if the RSI is already extremely high at the moment of the breakout, reducing the risk of entering at the end of a move.

Details

The indicator utilizes specific logic to ensure the quality of detected levels and signals:

• RSI-Filtered Pivots: Unlike standard pivots that use only price, this script requires the RSI to be above the overbought threshold for a Pivot High or below the oversold threshold for a Pivot Low. This ensures that levels represent areas of genuine momentum exhaustion.
• Dynamic Support/Resistance: Once a pivot is confirmed, a horizontal line is extended. These lines act as breakout triggers. Users can choose to delete these lines automatically once they are broken to maintain a clean chart.
• Automated Position Sizing: The Stop Loss can be calculated using the Average True Range (ATR) to account for market volatility or a fixed percentage from the entry price. Take Profit levels are then projected based on multiples of that risk.

Settings

Pivot & RSI Settings

• Pivot Length: The number of candles required on both sides to confirm a local high or low.
• RSI Length: The lookback period used for the RSI momentum calculation.
• RSI Overbought/Oversold Level (for pivots): The thresholds the RSI must cross to validate a Pivot High or Pivot Low.

RSI Filters

• Enable signal blocking filter: Toggle to prevent signals when RSI is in extreme zones.
• RSI Overbought (block BUY): Blocks bullish signals if RSI is above this value.
• RSI Oversold (block SELL): Blocks bearish signals if RSI is below this value.

Line & Signal Settings

• Delete broken lines after break: If enabled, support and resistance lines are removed from the chart once price crosses them.
• Signal triangle size: Adjusts the visual size of the entry triangles (Tiny, Small, Normal).
• Colors: Customization options for High/Low pivot lines, price labels, and signal colors.

TP/SL Settings

• SL = ATR × instead of %: Toggle between ATR-based volatility stops or fixed percentage stops.
• ATR Period/Multiplier: Configures the sensitivity of the ATR-based Stop Loss.
• RR for TP1 / TP2 / TP3: Sets the Risk-Reward ratio for each of the three target levels.
• Show TP/SL Display: Individual toggles to show or hide the SL and specific TP levels.

FAQ

How do I adjust the frequency of signals? You can decrease the "Pivot Length" or widen the "RSI Overbought/Oversold" thresholds to increase the number of detected levels. Conversely, increasing these values will result in fewer, more significant signals.

Can I use this for trend following? Yes, the indicator is best used when breakouts align with the dominant higher-timeframe trend. The RSI filter helps ensure you are not entering a trend that is already overextended.

How do I get access to the RSI Pivot Break System + TP/SL? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.