Adoptive Supertrend - Pivots

The Adoptive Supertrend - Pivots indicator is a trend-following tool that enhances the classic Supertrend logic by integrating pivot point high/lows and breakout detection to provide more responsive trailing stops.

Usage

The Usage section describes how this indicator can be applied to identify trend direction and potential reversal points. Users can select from four distinct trailing stop methodologies to suit their trading style:

• ATR: Uses standard Average True Range calculations to determine stop levels, similar to a traditional Supertrend.
• Breakout: A volatility-adjusted approach where the trailing stop only tightens if a significant price change (determined by a multiplier) occurs.
• Pivot Points: The stop level is updated only when new pivot highs or lows are formed, providing a step-like structure that respects market structure.
• Combined: Merges all aforementioned logic to create a comprehensive adaptive trailing stop.

The indicator also features visual markers for market structure (Higher Highs, Higher Lows, Lower Highs, and Lower Lows), which can be used to confirm trend strength or identify exhaustion phases.

Details

The script operates by calculating dynamic "long" and "short" stop levels based on the selected mode.

• Pivot Logic: When "Pivot Points" is selected, the stop level is anchored to the most recent pivot high or low, adjusted by an ATR multiplier. This ensures the stop is placed behind structural support or resistance.
• Breakout Logic: The tool monitors True Range relative to the ATR. If a breakout is detected (volatility exceeds the specified threshold), the script can aggressively adjust the stop to lock in gains during parabolic moves.
• Refinement: The "Wait For Candle Close" setting ensures that pivot points are confirmed by subsequent price action before they influence the trailing stop calculation, reducing premature signals.

Settings

Pivot Settings

• Pivot Length Left/Right: Determines the number of bars required to the left and right to confirm a pivot point.
• Show HH,LL,LH,HL Markers: Toggles the display of trend structure labels.
• Wait For Candle Close: If enabled, the indicator waits for the pivot-confirming candle to close before plotting.

Calculation Settings

• Trailing Stop Type: Dropdown menu to select between ATR, Breakout, Pivot Points, or Combined modes.
• ATR Periods: The lookback period used for ATR calculations.
• ATR Multiplier for Non pivot stop: The multiplier used for standard ATR and Breakout calculations.
• ATR Multiplier for Pivot Stop: The multiplier applied specifically to pivot levels.
• ATR Multiplier for High price change: Defines the threshold for what constitutes a "breakout" move.
• Wicks: Determines if the calculation should use high/low prices (Wicks) or just the close price.

FAQ

How do I use the different trailing stop types?

You can switch the trailing stop methodology in the settings menu under "Trailing Stop Type" to align the indicator with either volatility-based (ATR) or structure-based (Pivots) exits.

What do the HH/LL labels represent?

These labels indicate market structure: Higher High (HH), Higher Low (HL), Lower High (LH), and Lower Low (LL). They help traders identify if a trend is accelerating or weakening.

How can I access Adoptive Supertrend - Pivots?

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