Pivot Points

The Pivot Points indicator automatically identifies and labels market structure turning points as Higher Highs (HH), Lower Highs (LH), Higher Lows (HL), and Lower Lows (LL) to assist in trend analysis.

Usage

The tool is designed to help traders visualize market structure shifts and trend continuations. By identifying the relationship between consecutive pivot points, users can determine the current market bias:

• Bullish Structure: Indicated by a sequence of Higher Highs (HH) and Higher Lows (HL).
• Bearish Structure: Indicated by a sequence of Lower Highs (LH) and Lower Lows (LL).

Example usage includes identifying potential trend reversals when a series of Higher Highs is broken by a Lower High, or using the Support/Resistance level extensions to find areas of historical price significance where price might stall or reverse.

Details

The script utilizes the ta.pivothigh() and ta.pivotlow() functions to detect peaks and troughs based on a user-defined lookback (Left Hand Side) and lookforward (Right Hand Side) period. A pivot is confirmed only after the "Right Hand Side" number of bars has passed, meaning labels appear with a slight lag to ensure the point is a local extremity.

Beyond simple labeling, the script tracks the price value of the most recent pivots to extend Support and Resistance levels. These levels are plotted as circles, providing a visual reference for horizontal price levels that have previously acted as turning points.

Settings

• Pivot Length Left Hand Side: The number of bars required to the left of a candle for it to be considered a pivot point.
• Pivot Length Right Hand Side: The number of bars required to the right of a candle to confirm the pivot point. Higher values increase reliability but also increase lag.
• Show S/R Level Extensions: Toggles the visibility of horizontal Support and Resistance lines derived from the pivot points.

FAQ

How do I access Pivot Points?

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

Why do the labels appear several bars late?

The labels require a "Right Hand Side" confirmation period to ensure that the identified high or low is actually a pivot relative to subsequent price action.

Can I use these for automated alerts?

Yes, the script includes built-in alert conditions for Higher Highs, Lower Highs, Higher Lows, and Lower Lows, which can be configured via the TradingView alerts menu.