K's Pivot Points

The K's Pivot Points indicator is a specialized technical analysis tool designed to identify dynamic support and resistance levels by smoothing traditional pivot point calculations with moving averages and extreme price ranges.

Usage

The Usage section focuses on identifying potential market reversals through a re-integration strategy. Traders can use the indicator to spot two primary events:

• Found Support: Triggered when the market price breaks below the support line and subsequently closes back above it. This suggests a potential market base or an upcoming bounce.
• Found Resistance: Triggered when the market price surpasses the resistance line and subsequently closes back below it. This indicates a potential market top or a period of consolidation.

The indicator is most effective when used on hourly timeframes, where the default lookback periods align with daily market cycles.

Details

K's Pivot Points deviate from "Standard" or "Classic" methods by incorporating three distinct elements over a specific lookback window (default 24 periods):

1. The highest high of the lookback period.
2. The lowest low of the lookback period.
3. A simple moving average (SMA) of the close price.

The final Pivot Point is the average of these three components. Support and resistance levels are then derived by doubling the extreme pivot values of a secondary lookback (default 12 periods) and subtracting the primary high/low ranges. This multi-step smoothing process aims to reduce noise and provide more robust levels than static daily pivots.

Settings

• Pivot Lookback: Determines the number of periods used to calculate the highest highs, lowest lows, and the smoothed moving average of the close. Default is 24.

FAQ

How do I use the signals generated by the indicator?

Signals are generated based on price re-integration. A green triangle appears when price recovers above support, and a red triangle appears when price falls back below resistance.

Can I use this on any timeframe?

While the default settings are optimized for hourly charts (representing a 24-hour cycle), the lookback periods can be adjusted to suit different timeframes and trading styles.

How can I access K's Pivot Points?

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