# Livermore Pivotal Point Livermore Pivotal Point is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Livermore Pivotal Point keeps the Market Key on the chart: a six-column price record with percent-scaled thresholds (default 6%) that underlines rally and reaction extremes as pivotal points, then tracks every break for 3% follow-through or a danger-signal failure. Levels, break markers, danger crosses and a ledger table for structure traders. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 21, 2026. - Access: free. - Concepts: [Livermore Pivotal Point](https://www.luxalgo.com/library/concept/livermore-pivotal-point/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=jghx8mjwahcngdkypec1ndw3 - Page: https://www.luxalgo.com/library/indicator/livermore-pivotal-point/ **Livermore Pivotal Point** is the definitive clean automation of the [Livermore pivotal point](https://www.luxalgo.com/library/concept/livermore-pivotal-point/) method: the six-column price record is kept bar by bar with percent-scaled thresholds, rally and reaction extremes are underlined as pivotal points the moment the record moves on, and every level is tracked through its lifecycle - penetration, prompt follow-through, or the stalled break read as a danger signal. ## How to Trade the Livermore Pivotal Point? - **Break marker (triangle)**: price penetrates an active pivotal point - the entry cue in a method that acts only on penetration, never inside the base. - **Follow-through confirmed**: the break extends beyond the confirmation threshold and the record transfers to a trend column. - **Danger signal (cross)**: price crossed a pivotal point but closed back through it before reaching confirmation - treated as an exit cue, always evaluated on the close. - **C-PP versus R-PP labels**: continuation points confirm the prevailing trend resuming; reversal points start a new trend after a base or climax. The record table shows all six columns, active pivotal points with break status, and the column being recorded. ## Livermore Pivotal Point Settings - **Threshold Units** (default Percent): scales the point rules to any price level; Points uses raw units, as in the 1940 Market Key tables. - **Natural Rally/Reaction Threshold** (default 6): counter-move that opens a Natural Rally or Reaction record. - **Confirmation Threshold** (default 3): extension beyond a pivotal point that confirms follow-through. - **Record Source** (default High/Low): bar extremes, or closes only. - **Pivotal Point Levels / Labels, Break Markers, Danger Signal Markers, Price Record Trail** (all default on): display layers. - **Record Table** (default on) with position and size; **Level Width** (default 1). ## Frequently Asked Questions ### How does this relate to Dow Theory? [Dow Theory](https://www.luxalgo.com/library/indicator/dow-theory/) reads broad trend phases and confirmation; the Market Key is a mechanical single-instrument ledger where fixed thresholds decide every column change, and the pivotal points it underlines are specific prices whose penetration with follow-through is the whole signal. ### What exactly is a danger signal? A cross of a pivotal point that fails to reach the confirmation threshold and closes back across the level. A genuine move follows through promptly, so the stall itself is the information - marked with a cross and a dedicated alert. ### Should I use Percent or Points thresholds? Percent is the default: 6% and 3% scale the roughly 6-point and 3-point rules Livermore applied to leading stocks across any price level. Points exists for faithfulness to the original tables. ## Related indicators - [Smart Money Concepts (SMC)](https://www.luxalgo.com/library/indicator/smart-money-concepts-smc/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/smart-money-concepts-smc.md - [Structure & Trend Dashboard](https://www.luxalgo.com/library/indicator/structure-trend-dashboard/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/structure-trend-dashboard.md - [FVG + Liquidity Sweep + CISD](https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd.md - [MSS Sweep Fib Retrace](https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/mss-sweep-fib-retrace.md - [HTF CISD Projections](https://www.luxalgo.com/library/indicator/htf-cisd-projections/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/htf-cisd-projections.md - [HTF Sweep Signals](https://www.luxalgo.com/library/indicator/htf-sweep-signals/) (Swing Failure Pattern): markdown at https://www.luxalgo.com/library/indicator/htf-sweep-signals.md - [Liquidity Structure & Order Flow](https://www.luxalgo.com/library/indicator/liquidity-structure-order-flow/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/liquidity-structure-order-flow.md - [Market Structure Break & OB Probability Toolkit](https://www.luxalgo.com/library/indicator/market-structure-break-ob-probability-toolkit/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-break-ob-probability-toolkit.md --- Source: https://www.luxalgo.com/library/indicator/livermore-pivotal-point/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/