Livermore Pivotal Point

Livermore Pivotal Point is the definitive clean automation of the 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 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.