Pivot points Diagonals

The Pivot points Diagonals indicator identifies and connects significant pivot highs and lows with diagonal projection lines to highlight potential trend exhaustion and support/resistance zones. By utilizing linear equations based on price and time, the tool projects these levels forward, providing a visual representation of market structure dynamics.

Usage

The tool is primarily used to visualize the relationship between consecutive pivot points. When a new pivot high or low is confirmed, the script draws a diagonal line connecting the previous pivot of the same type to the new one, extending it into the future based on the user-defined multiplier.

• Trend Identification: Steep diagonal lines can indicate aggressive price movements, while flatter lines suggest more gradual trends.
• Support & Resistance: The projected diagonal lines act as dynamic levels where price may find rejection or support.
• Breakouts: Traders can monitor for price crosses above high diagonals (resistance) or below low diagonals (support) for potential trend shifts.

Details

The indicator calculates its lines by determining the slope (m) and intercept (q) of a line passing through two time-price coordinates: the previous pivot and the current pivot.

• Pivot Detection: Uses the ta.pivothigh and ta.pivotlow functions, which require a specific number of bars to the left and right to confirm a peak or valley.
• Projection: Unlike standard trendlines that stop at the most recent pivot, this script uses the lineMult setting to extend the line's time coordinate into the future, allowing traders to anticipate where price might interact with the diagonal in upcoming sessions.

Settings

Main Settings

• Left bars: The number of bars to the left of a high or low required to identify a pivot point.
• Right bars: The number of bars to the right required to confirm a pivot point (higher values result in more lag but more significant pivots).
• Line length: A multiplier that determines how far the diagonal line is projected past the current bar.
• Source: Determines whether the pivot points are calculated based on "High/Low" prices or "Close" prices.

FAQ

How do I access the Pivot points Diagonals?

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

Why do the lines appear with a delay?

The lines rely on pivot points which require "Right bars" to confirm a local top or bottom. This means a line will only appear once the price has moved sufficiently away from the peak or trough.

Can I use this for intraday trading?

Yes, the indicator automatically adjusts its time calculations based on the chart interval, making it suitable for both intraday and daily timeframes.