Pivot Reversal Strategy Alerts V2

The Pivot Reversal Strategy Alerts V2 indicator identifies potential trend reversals by detecting pivot highs and lows and signaling entries when price breaks beyond these levels.

Usage

The Usage of this tool centers on identifying key structural turning points in the market. When a pivot high or low is established based on the user-defined lookback and lookforward periods, the indicator monitors price action for a breakout.

• Long Entry: Occurs when the price crosses above the most recent pivot high.
• Short Entry: Occurs when the price crosses below the most recent pivot low.

Traders can use these signals to identify shifts in market momentum or as part of a trend-following system where reversals confirm a new directional bias. The visual labels on the chart provide clear "Long" and "Short" annotations to assist in manual trading or alert automation.

Details

The script functions by utilizing the ta.pivothigh() and ta.pivotlow() functions to locate peaks and valleys. A pivot is confirmed only after a specific number of bars have passed to the right of the high/low point (Right Bars), ensuring the point is indeed a local extremity.

Once a pivot is found, its price level is stored. The strategy then looks for a breakout of this level plus or minus one tick. This version is specifically optimized for alerts and visual clarity, ensuring that signals do not repetitively trigger in the same direction without an intervening opposite signal.

Settings

• Left Bars: The number of bars required to the left of a high or low for it to be considered a pivot. Increasing this value filters for more significant structural points.
• Right Bars: The number of bars required to the right of a high or low to confirm the pivot. Note that higher values increase the lag of the signal but improve reliability.

FAQ

How do I adjust the sensitivity of the signals?

You can adjust the "Left Bars" and "Right Bars" settings. Lower values will result in more frequent signals based on short-term price fluctuations, while higher values will focus on major market swings.

Why does a signal appear several bars after a high or low?

Pivots require a confirmation period (defined by the "Right Bars" setting) to ensure the peak or valley is valid. The signal triggers only once the price subsequently breaks the confirmed pivot level.

How can I access Pivot Reversal Strategy Alerts V2?

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