Pivot and Wick Boxes with Break Signals

The Pivot and Wick Boxes with Break Signals indicator identifies key support and resistance levels using high and low pivot points and their respective candle wicks to generate breakout signals. This tool aims to visualize supply and demand zones while providing actionable alerts when price breaks through these established boundaries.

Usage

The indicator can be used to identify potential trend reversals or continuations. Users can observe how price interacts with the red (high pivot) and green (low pivot) boxes.

• Bullish Breakouts: A green triangle appears below the bar when price closes above the upper edge of a high pivot box.
• Bearish Breakouts: A red triangle appears above the bar when price closes below the lower edge of a low pivot box.
• Volume Confirmation: By enabling the volume filter, signals only appear if the breakout volume exceeds the average volume by a user-defined multiplier, helping to reduce false signals during low-liquidity periods.

Details

The script utilizes ta.pivothigh and ta.pivotlow to detect structural peaks and valleys. The boxes are constructed using the pivot price and the nearest wick extremity (high/low vs. open/close), creating a "wick zone" that often acts as a more robust area of interest than a single line.

• Detection Delay: Pivots are confirmed after the specified "Pivot Length" has passed, ensuring the point is a local extreme.
• Memory Management: The tool limits the display to 500 bars back and a maximum number of active boxes to maintain chart performance and clarity.
• Box Evolution: Boxes are automatically removed once they are broken by price action or exceed the bar limit.

Settings

Pivot Settings

• Show High/Low Pivot Boxes: Toggles the visibility of resistance and support zones.
• Pivot Length: Determines the number of bars required on either side to confirm a pivot point.
• Max High/Low Pivot Boxes: Sets the maximum number of recent zones to display on the chart.

Signal Settings

• Use Volume Filter for Signals: Enables volume-based confirmation for breakout triangles.
• Average Volume Multiplier: The factor by which current volume must exceed the SMA to trigger a signal.
• Average Volume Period: The lookback period for the volume moving average calculation.

Style & Labels

• Box Style (High/Low): Options to customize border colors, background gradients, widths, and line styles (Solid, Dashed, Dotted).
• Show Pivot Labels: Toggles detailed labels containing price, volume, and volume delta information at the pivot source.

FAQ

How do I access Pivot and Wick Boxes with Break Signals?

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

Why are the signals appearing a few bars after the peak?

Signals and boxes are dependent on the Pivot Length setting. The indicator must wait for the specified number of bars to confirm that a high or low is actually a pivot.

Can I change the sensitivity of the breakout signals?

Yes, you can adjust the Pivot Length to find more frequent (shorter length) or more significant (longer length) levels, or adjust the Volume Multiplier to filter out weak moves.