Pivot Highs Lows

The Pivot Highs Lows indicator identifies significant structural reversal points in the market by scanning for peak highs and valley lows over a specific lookback period. It provides traders with a visual representation of key swing points, which can be utilized to identify trend changes, support and resistance levels, and potential entry or exit zones.

Usage

The indicator displays colored crosses on the chart to mark significant pivot points. A red cross above a candle indicates a Pivot High, suggesting a potential area of resistance or a bearish reversal. A green cross below a candle indicates a Pivot Low, suggesting potential support or a bullish reversal.

Traders can use these points to:

• Identify market structure (higher highs/lower lows).
• Set stop-loss levels based on recent swing points.
• Confirm price action patterns like double tops or bottoms.

Details

The script uses a centered window approach to define pivots. Specifically, it looks for the highest high or lowest low within a 76-bar window. A pivot is confirmed when the highest (or lowest) price occurs exactly at the 50th bar of that window, followed by 25 bars of price action that do not exceed that level. This method ensures that the identified point is a genuine local peak or trough relative to its immediate surroundings. Because the calculation requires bars to develop to the right of the pivot, the markers are plotted with an offset to reflect the true historical location of the price peak.

Settings

• Left Bars: The number of bars to the left of the pivot point required for calculation (Fixed at 50 in this version).
• Right Bars: The number of bars to the right of the pivot point required to confirm the reversal (Fixed at 25 in this version).
• Pivot High Color: Adjusts the visual color for bearish reversal points.
• Pivot Low Color: Adjusts the visual color for bullish reversal points.

FAQ

How do I use the Pivot Highs Lows signals?

The signals appear after the "Right Bars" period has passed to confirm the high or low is valid. They should be used as confirmation of structural shifts rather than real-time "top picking" tools.

Can I set alerts for these pivots?

Yes, the script includes built-in alert functionality that triggers as soon as a Pivot High or Pivot Low is confirmed by the price action.

How can I access Pivot Highs Lows?

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