Pivot Point Reversal + RSI Alerts

The Pivot Point Reversal + RSI Alerts indicator identifies potential trend reversals by combining classic pivot point analysis with Relative Strength Index (RSI) filtering to generate actionable entry levels and alerts.

Usage

The tool is primarily used to identify breakout points following a pivot reversal. When a Pivot High or Low is detected, the script checks the RSI value at the time the pivot was formed. If the RSI condition is met, a price level is established (just above the Pivot High for longs or just below the Pivot Low for shorts).

An entry signal is triggered when:

• Long Signal: The price crosses above the established Long Level after a Pivot High was formed while the RSI was below the specified overbought threshold.
• Short Signal: The price crosses below the established Short Level after a Pivot Low was formed while the RSI was above the specified oversold threshold.

Details

This script identifies swing points based on a user-defined number of bars to the left and right. Unlike standard pivot indicators that simply mark the peak/trough, this tool tracks the price levels of these pivots and filters them using the RSI.

The logic evaluates the RSI at the specific bar where the pivot occurred (offset by the Right Bars setting). This ensures that the momentum filter is synced with the structural turning point. Once a valid pivot is confirmed and the RSI filter passes, the indicator monitors for a price breakout of that pivot level to confirm the reversal.

Settings

Pivot Points

• PP - Left Bars: Number of bars required to the left of a high/low to confirm a pivot.
• PP - Right Bars: Number of bars required to the right of a high/low to confirm a pivot.

RSI

• RSI - Length: The lookback period for the Relative Strength Index calculation.
• RSI - Overbought level: The threshold below which the RSI must be for a Long Signal level to be valid.
• RSI - Oversold level: The threshold above which the RSI must be for a Short Signal level to be valid.

FAQ

How do I use the signals from this indicator?

The indicator plots arrows on the chart labeled "Long" and "Short" when price breaks the filtered pivot levels. You can use these as entry triggers for reversal trades.

What do the horizontal lines represent?

The green line represents the current Long Level (Pivot High + tick), and the red line represents the current Short Level (Pivot Low - tick). These levels update whenever a new valid pivot is detected.

How can I access Pivot Point Reversal + RSI Alerts?

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