John Carter Pivot Points

The John Carter Pivot Points indicator provides a comprehensive pivot-based framework for identifying key support and resistance levels based on historical price action. By utilizing the previous period's high, low, and close, the tool calculates primary pivot levels and midpoints to assist traders in identifying potential reversal or breakout zones.

Usage

The John Carter Pivot Points tool is designed for intraday and swing trading strategies. Traders can use these levels to define entries, exits, and stop-loss placements.

• Pivot Level (P): Acts as the primary bias for the day. Trading above the pivot suggests a bullish bias, while trading below suggests a bearish bias.
• Resistance Levels (R1, R2, R3): Used as profit targets for long positions or areas to look for bearish reversals.
• Support Levels (S1, S2, S3): Used as profit targets for short positions or areas to look for bullish reversals.
• Midpoint Levels: Dashed lines between the main pivots provide secondary areas of interest where price may stall or consolidate.

A common application involves waiting for a price retracement to a violated pivot level before entering in the direction of the trend. For example, if price breaks above R1, a trader might look for a buy opportunity on a return to the R1 level.

Details

The indicator calculates its levels using the "Mastering The Trade" methodology by John Carter. The core pivot is the average of the previous higher timeframe's high, low, and close. Unlike standard pivot indicators, this version includes specific midpoint calculations:

• Pivot (P): (High + Low + Close) / 3
• Resistance 1 (R1): (P * 2) - Low
• Support 1 (S1): (P * 2) - High
• Resistance 2 (R2): P + (High - Low)
• Support 2 (S2): P - (High - Low)
• Resistance 3 (R3): R1 + (High - Low)
• Support 3 (S3): S1 - (High - Low)

The script also identifies midpoints between these major levels (e.g., the midpoint between P and R1) to provide more granular price context.

Settings

• Higher Timeframe: Determines the source period for the pivot calculations (e.g., Daily, Weekly, or Monthly).

FAQ

How do I use these pivots for stop losses?

Following the methodology, stops are often placed "just in front" of the next logical pivot level or at a fixed point distance relative to the asset being traded.

Can I use this on any timeframe?

Yes, while the pivots are calculated from a higher timeframe (like the Daily), they can be displayed on any lower timeframe chart (like the 5-minute or 15-minute) for intraday execution.

How can I access John Carter Pivot Points?

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