Pivot Breakout Retest Signals

The Pivot Breakout Retest Signals indicator identifies high-probability trading opportunities by detecting price breakouts and subsequent retests of Classic Pivot Point levels.

Usage

The Usage section describes how the script can be used to identify trend continuations or reversals based on pivot level interactions. Traders can use these signals to find entry points after a level has been validated as new support or resistance.

• Bullish Signals: These occur when the price breaks above a Pivot, R1, or R2 level and then successfully retests that level. A signal is generated if the price touches or dips below the level but manages to close back above it within the specified timeframe window.
• Bearish Signals: These are triggered when the price breaks below a Pivot, S1, or S2 level. If the price随后 rallies to touch or exceed the level but closes back below it within the retest window, a bearish signal is displayed.
• Timeframe Filtering: By adjusting the Pivot Timeframe, users can align signals with Daily, Weekly, or Monthly trends, allowing the tool to be used for both intraday scalping and swing trading.

Details

The script utilizes Classic Pivot Point calculations derived from higher timeframe data (Daily, Weekly, or Monthly). These levels include the central Pivot (P), two Resistance levels (R1, R2), and two Support levels (S1, S2).

The detection logic follows a multi-step execution process:

1. Breakout Detection: The script monitors for a ta.crossover or ta.crossunder of a pivot level. Once detected, the bar index of the breakout is stored.
2. Window Validation: The script looks for a retest within a user-defined number of bars. If the price does not retest within this "Retest Window," the breakout is discarded.
3. Retest Confirmation: A retest is confirmed if the price low (for bullish) or high (for bearish) touches the level, while the candle close remains on the breakout side.
4. Session Resets: Logic is reset at the start of every new higher-timeframe session to ensure signals remain relevant to current market structures.

Settings

• Pivot Timeframe: Determines the higher timeframe used to calculate pivot levels (Daily, Weekly, or Monthly).
• Retest Window (Candles): Sets the maximum number of bars allowed between the initial breakout and the retest confirmation.
• Bullish/Bearish Signal Visualization: Controls the appearance of labels and shapes on the chart when a valid retest is detected.
• Alerts: Users can configure notifications for Bullish, Bearish, or "Any" signal events to automate trade monitoring.

FAQ

How do I adjust the sensitivity of the signals? You can adjust the "Retest Window" setting. A smaller window requires a more immediate retest, which can filter out choppy price action but may miss some valid setups.

What pivot levels are monitored by this script? The script monitors the central Pivot, Resistance 1 (R1), Resistance 2 (R2), Support 1 (S1), and Support 2 (S2).

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