Pivot Points High Low

The Pivot Points High Low indicator is a technical tool designed to automatically identify and visualize structural pivot highs and lows on the chart, helping traders pinpoint potential reversal zones or levels of support and resistance.

Usage

The indicator can be used to define market structure by identifying key turning points in price action. When a new pivot high or low is confirmed based on the lookback and lookforward periods, a horizontal line is projected from the peak or trough. These levels often serve as significant areas for stop-loss placement, target setting, or trend analysis.

To use the indicator effectively:

• Identify horizontal support and resistance zones formed by the extended pivot lines.
• Monitor for price breakouts or rejections at these historical pivot levels.
• Adjust the "Left" and "Right" bar settings to filter for minor noise or major structural shifts.

Details

The script utilizes the ta.pivothigh() and ta.pivotlow() functions to detect price peaks and troughs. A pivot is confirmed only after a specific number of bars have passed to the right of the extreme point (Right Bars), ensuring that the point is indeed a local maximum or minimum relative to its neighbors. The indicator then draws a horizontal line starting from the bar where the high/low occurred and extending it forward, providing a visual reference for that level.

Settings

• Left: The number of bars required to the left of a potential pivot point to consider it a high or low.
• Right: The number of bars required to the right of a potential pivot point to confirm it. Higher values result in more significant but lagging pivots.
• Source: Determines the price source used for pivot detection. Options include "High/Low" for standard price extremes or "Close" for pivots based on candle bodies.

FAQ

How do I access Pivot Points High Low?

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

Why do the pivot lines appear with a delay?

Pivots require a certain number of bars to close to the right of the high or low (defined by the "Right" setting) to confirm that the point is a local peak or trough.

Can I use this for intraday trading?

Yes, the indicator works on any timeframe. For higher resolution charts (lower timeframes), you may want to decrease the Left and Right bar values to capture more frequent price fluctuations.