Pivot Point SuperTrend

The Pivot Point SuperTrend indicator is a trend-following tool that combines the mechanics of the traditional SuperTrend with Pivot Point calculations to offer enhanced trend stability and entry/exit signals. By using pivot points as the baseline for calculating volatility-based bands, this script aims to filter out market noise and keep traders aligned with the prevailing trend for longer durations.

Usage

The Pivot Point SuperTrend can be used for identifying market direction and potential entry points. When the price closes above the upper trailing stop, a bullish trend is confirmed (Buy signal), and when it closes below the lower trailing stop, a bearish trend is confirmed (Sell signal).

• Trend Following: Use the green and red trailing stop lines to define the current market bias.
• Early Exits: The optional "PP Center Line" acts as a weighted average of recent pivots. If the price crosses this line, it can serve as an early warning for trend exhaustion or a signal to take partial profits.
• Support & Resistance: Enabling the S/R lines allows you to see historical pivot levels, which can act as horizontal targets or areas for stop-loss placement.
• Sensitivity Adjustments: Users can adjust the "Pivot Point Period" to make the indicator more or less reactive to recent price swings. A smaller period results in more sensitive lines.

Details

Unlike a standard SuperTrend that typically uses the median price (hl2), this script identifies high and low pivot points over a user-defined period. It calculates a weighted average of these pivots to create a smoothed "center" line.

The volatility bands are then calculated by adding or subtracting a multiple of the Average True Range (ATR) from this weighted center. This method gives more weight to historical price structural points rather than just the immediate candle range, potentially providing a more robust trailing stop.

Settings

• Pivot Point Period: The lookback period used to identify high and low pivot points.
• ATR Factor: The multiplier applied to the ATR to determine the distance of the trailing stop from the center.
• ATR Period: The lookback window for the Average True Range calculation.
• Show Pivot Points: Toggles the visibility of 'H' and 'L' labels on the chart.
• Show Buy/Sell Labels: Toggles the visibility of trade entry labels.
• Show PP Center Line: Displays the weighted average line of the pivots.
• Show Support/Resistance: Toggles horizontal dots representing the most recent support and resistance levels.

FAQ

How do I use the Pivot Point SuperTrend?

You can use it to identify trend reversals and as a trailing stop-loss. Buy when the line turns green and Sell when it turns red.

Can I adjust the sensitivity of the signals?

Yes, by decreasing the "Pivot Point Period" or the "ATR Factor," the indicator will become more sensitive to price changes. Increasing these values will smooth the output.

Where can I access this script?

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