Standard Deviation Pivot points

The Standard Deviation Pivot points indicator calculates support and resistance levels by applying standard deviation to traditional pivot points derived from a previous session's high, low, and close data.

Usage

The tool serves as a multi-timeframe framework for identifying potential price reversal or breakout zones. Users can monitor price action relative to the pivot levels (plotted as circles) and the subsequent deviation levels. Price often oscillates within the first three deviation levels; however, a decisive breakout beyond the third level accompanied by high volume can signal the start of a significant trend day. By visualizing two different timeframes simultaneously (e.g., Daily and Weekly), traders can identify "confluence zones" where levels from both periods overlap, providing stronger technical significance.

Details

Unlike traditional pivots that use fixed multipliers, this indicator calculates the standard deviation of the high, low, and close relative to the pivot point (HLC3). This statistical approach adapts the distance between levels based on the actual volatility of the preceding period. The script allows for up to 10 deviation levels in both upward (resistance) and downward (support) directions. It includes a "Hide Historical" feature to keep the chart clean by only displaying the most recent levels.

Settings

General Settings

• Show Labels?: Toggles the display of price labels next to the levels.
• Hide Historical: When enabled, only the levels for the most recent session are displayed.
• Display Offset value: Shifts the plots horizontally on the chart.

Timeframe Settings (Available for 1st and 2nd Timeframes)

• Timeframe Period: Sets the anchor period for calculation (e.g., Daily, Weekly, Monthly).
• Use current session?: If enabled, uses data from the developing session; otherwise, uses the completed previous session.
• Show Level 3-5?: Toggles the visibility of the 3rd through 5th deviation levels.
• Show Level 6-10?: Toggles the visibility of the 6th through 10th deviation levels.
• Show second timeframe?: Enables or disables the overlay of the second timeframe's pivot levels.

FAQ

How do I use the different levels for trading?

Levels 1 through 3 typically act as primary support and resistance where mean reversion occurs. Levels beyond 3 are often reached during high-volatility trend days.

Can I change the timeframe for the pivots?

Yes, the indicator supports multi-timeframe analysis. You can set two independent timeframes (such as 'D' for daily and 'W' for weekly) within the settings menu.

How can I access Standard Deviation Pivot points?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.