Pivot Points And Breakout Price Action

The Pivot Points And Breakout Price Action indicator tracks swing highs and lows to identify key market structural points and provides visual alerts when price breaks out of these established levels.

Usage

The Usage section focuses on identifying market reversals and continuation patterns through pivot analysis. Traders can use this tool to find opportunities at key areas where price has historically shown heavy reaction.

• Pivot Circles: Small circles are plotted on the chart representing swing highs (HH) and swing lows (LL). These act as historical support and resistance zones.
• Breakout Bar Coloring: The script changes the color of the price candles when a breakout occurs. A bullish breakout occurs when price closes above a previous swing high, while a bearish breakout occurs when price closes below a previous swing low.
• Trend Identification: By observing the sequence of swing points and subsequent breakouts, users can better understand the current market structure and momentum.

Details

The script calculates pivot points based on "Look Left" and "Look Right" parameters. It identifies a swing high when the high of a bar is the highest over a specified lookback period and maintains that strength over a look-forward period. The "Time-Frame Ratio" allows for the scaling of these periods to account for different volatility levels or timeframes. A breakout is confirmed when a bar closes beyond the most recently established pivot level.

Settings

• Look Left: The number of bars to the left used to determine a potential swing high or low.
• Look Right: The number of bars to the right required to confirm a pivot point.
• Time-Frame Ratio: A multiplier used to scale the lookback and look-forward periods, allowing for adjustment across different chart intervals.

FAQ

How do I use the breakout signals?

Breakout signals are indicated by bar coloring. When a candle turns green (default), it suggests a bullish breakout above a previous high. When it turns red, it suggests a bearish breakout below a previous low.

What do the circles on the chart represent?

The circles represent confirmed pivot points. A circle above a bar indicates a swing high, while a circle below a bar indicates a swing low.

How can I access Pivot Points And Breakout Price Action?

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