Pivot Points With Alerts

The Pivot Points With Alerts indicator provides automated support and resistance levels based on various calculation methods to help traders identify potential price reversal or breakout zones.

Usage

The Usage of pivot points involves identifying key levels where price action might stall or reverse. Traders typically use the central pivot (P) as a primary trend filter, while support levels (S1–S5) and resistance levels (R1–R5) serve as price targets or entry zones.

• Trend Identification: If price is trading above the central pivot, the sentiment is often considered bullish; below it, the sentiment is bearish.
• Reversals: Support levels can act as buying zones in a ranging market, while resistance levels can act as selling zones.
• Breakouts: A strong move through a resistance level can signal the continuation of an upward trend.
• Alerts: The script includes built-in alert triggers when the price crosses the central pivot, any resistance level, or any support level, allowing for passive monitoring of market structure.

Details

Pivot points are calculated using the previous period's high, low, and close prices. This script allows users to choose between three popular calculation methodologies:

• Traditional: A standard floor pivot calculation providing up to 5 levels of support and resistance.
• Classic: Uses a slightly different scaling for the outer levels compared to traditional floor pivots.
• Fibonacci: Utilizes Fibonacci retracement levels (0.382, 0.618, and 1.0) applied to the previous period's range to derive the S/R levels.

The indicator uses request.security with barmerge.lookahead_on to ensure levels are plotted correctly from the start of the period without repainting the values once the period is established.

Settings

• Pivots Type: Selects the calculation method (Traditional, Classic, or Fibonacci).
• Line Width: Adjusts the thickness of the plotted pivot lines.
• Custom Timeframe Input: Allows the user to define a specific timeframe for calculation (e.g., 4-hour, 2-day) when the "Pivots Timeframe" is set to "Custom".
• Pivots Timeframe: Choose between standard intervals (Weekly, Monthly, Yearly) or a user-defined Custom timeframe.

FAQ

How do I use the different pivot types?

You can switch between Traditional, Classic, and Fibonacci in the settings menu. Traditional is often used for daily floor pivots, while Fibonacci is preferred by traders looking for harmony with natural retracement levels.

Can I set alerts for specific levels?

The indicator triggers generic alerts for "Resistance," "Support," or "Pivot" crossings. To create an alert, use the TradingView Alert dialog and select the condition corresponding to the price crossing these specific level groups.

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.