Moving Average with Pivot Range

The Moving Average with Pivot Range indicator provides a multi-layered support and resistance framework by combining traditional moving averages of high, low, and close prices with daily Central Pivot Range (CPR) levels. This tool helps traders identify trend direction through the moving average envelope while utilizing daily pivots to pinpoint potential reversal zones or price targets.

Usage

The Moving Average with Pivot Range can be used to identify trend momentum and volatility clusters. The three moving averages (MA High, MA Low, and MA Mid) create a channel that tracks the price trend; when price remains above the channel, it indicates a bullish trend, whereas price below the channel suggests bearish sentiment.

The daily pivot levels—comprised of the Pivot, Bottom Central (BC), and Top Central (TC)—act as dynamic horizontal support and resistance. Traders often look for "confluence" where the moving average envelope intersects with the Daily Pivot Range. For example, if the price pulls back to the MA Mid and aligns with the Daily Pivot, it may signal a high-probability entry point.

Details

This indicator calculates three distinct Simple Moving Averages (SMA) based on the high, low, and close prices of a user-defined length. This creates a band-like structure that accounts for the trading range of the specified period.

The Pivot Range component is based on Mark Fisher's "Central Pivot Range" logic. It calculates three specific levels using the previous day's data:

• Pivot Point: (High + Low + Close) / 3
• Bottom Central (BC): (High + Low) / 2
• Top Central (TC): (Pivot - BC) + Pivot

These levels are requested from the daily timeframe using security functions, ensuring that the levels remain constant throughout the current trading day regardless of the chart's intraday timeframe. This tool is based on original concepts by @iamyhk.

Settings

• Show Daily Pivots?: Toggles the visibility of the Daily Pivot, BC, and TC levels on the chart.
• Length: Sets the lookback period for the three Simple Moving Averages.
• Source: Determines the input source for the middle moving average (default is Close).
• Source High: Determines the input source for the upper moving average (default is High).
• Source Low: Determines the input source for the lower moving average (default is Low).
• Offset: Shifts the moving average plots forward or backward in time.

FAQ

How do I interpret the Daily Pivot Range width? A narrow range between the TC and BC levels typically suggests a trending market environment is likely, while a wide range often indicates a sideways or range-bound market for that day.

Can I use this indicator for intraday trading? Yes, the Daily Pivot Range is specifically designed for intraday analysis as the levels are calculated from the previous day's data and remain static across lower timeframes like the 5-minute or 15-minute charts.

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.