Pivot and Wick Boxes with Break Signals v2

The Pivot and Wick Boxes with Break Signals v2 indicator identifies significant pivot highs and lows to draw customizable zones based on candle wicks, highlighting key support and resistance areas. This tool aims to provide traders with clear breakout signals and visual zones that help identify trend continuations or potential reversals without cluttering the chart.

Usage

The indicator can be used to identify supply and demand zones where price has previously reacted.

• Breakout Signals: When the price closes outside of a displayed pivot zone, a signal is generated. A green upward triangle appears below the bar for a bullish breakout (above a high pivot), while a red downward triangle appears above the bar for a bearish breakout (below a low pivot).
• Support and Resistance: Pivot zones serve as psychological and technical levels. If price approaches a zone but fails to break through, it often suggests a rejection or the end of a correction.
• Volume Confirmation: By enabling the volume filter, you can ensure that breakout signals only occur during periods of high market activity, potentially filtering out false moves.
• Overlapping Zones: When multiple boxes overlap in a specific price range, it indicates a highly tested level that carries more significance for future price action.

Details

Unlike traditional pivot indicators that extend lines across the entire screen, this script draws boxes on the latest candle based on historical pivot wicks. This "clean chart" approach ensures that traders can monitor multiple levels simultaneously without visual exhaustion. The indicator focuses specifically on the wicks of pivot candles because these represent areas of absorption or sharp rejection where large market participants are often active.

Settings

Pivot Settings

• Show High/Low Pivot Boxes: Toggles the visibility of the respective pivot zones.
• Pivot Length: Determines the lookback period for pivot detection. Higher values result in more significant but delayed pivots.
• Max High/Low Pivot Boxes: Limits the number of active boxes displayed on the chart to maintain clarity.

Signal Settings

• Use Volume Filter for Signals: When enabled, breakout signals will only trigger if the current volume exceeds a specific threshold.
• Average Volume Multiplier: The multiplier applied to the average volume to determine the signal threshold.
• Average Volume Period: The lookback period used to calculate the moving average of volume.

Style Settings

• High/Low Box Style: Allows customization of border colors, gradient backgrounds, border width, and line styles (Solid, Dashed, or Dotted).

FAQ

How do I interpret a "Buy" or "Sell" triangle? A green triangle indicates price has broken and closed above a resistance (High Pivot) wick zone. A red triangle indicates price has broken and closed below a support (Low Pivot) wick zone.

Why are some pivots not showing boxes? If the Volume Filter is enabled, pivots that formed on low volume (below your specified multiplier) will not be displayed. Additionally, the "Max Boxes" setting may be limiting the total number of visible zones.

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.