Main Pivots is an indicator that looks for pivot points at specified intervals (days, weeks, months, years, etc.). Then all extremes are checked for gluing and consistent support and resistance lines are formed, which can be used to find the optimal pivot points.
For each interval, there is a pair of reversal lines corresponding to the minimum (support line) and maximum (resistance line) of the price movement in the interval. The difference between these lines is the price movement over the selected interval.
The indicator draws resistance and support levels on all timeframes, so it is convenient to use it for both intraday and medium-term trading.
If the indicator finds several support or resistance levels at the same level, the levels are glued together into one stronger level. Weak levels are displayed as a dashed line, strong levels are displayed as a solid line. The thickness of the solid levels corresponds to the strength of the level, the stronger the level, the thicker the line.
The information for the level shows the “lifetime” – the value up to the moment when the corresponding support or resistance level was formed.
The peculiarity of the indicator is that it “forgets” about the points that go beyond the considered interval. For example, if a daily level was found with a lifetime of 23 hours, then after two hour bars, this level will be outside the daily window and the daily pivots will be recalculated based on the remaining bars. This allows you to avoid tracking irrelevant reversal levels.
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Attention! In the event of a breakdown of the resistance or support level, the levels are recalculated and a new level is set at the breakout point. In this case, the “lifetime” is reset and a new countdown begins.
- Precise (int) – the precision with which to” glue ” the levels. If the difference between the levels is less than the specified number of pips, the levels are glued together into one;
- SupportColor, ResistanceColor ( color) – Color settings for resistance and support levels;
- DrawFibo [interval] (bool) – whether or not to draw additional Fibonacci levels on the selected intervals.
1. Use case ” Hang up from the level”:
Note. this option is convenient to use with the “DrawFibo” parameter enabled.
Conditions for entry:
- A stronger support or resistance level is formed (the daily level is glued together with the weekly and higher levels);
- Level lifetime of at least 12 hours;
- There was a “rebound” from the level and the price fell below the Fibo level of 23.2
Risks:
- The stop is placed above the resistance level or below the support level (depending on the direction of the position)
Goals:
- At the discretion of the trader, but not less than the level of risks.
2. Use case “Level breakdown”
Conditions for entry:
- A stronger support or resistance level is formed (the daily level is glued together with the weekly and higher levels);
- The life time of the level before the breakdown is at least 12 hours;
- There was a breakthrough of the level (the level of the reset time of life).
Risks:
- The stop is set at the level of 23.2 from the level at the time of entering the trade (since there was a failure, a new level will be updated and the fibo levels that depend on it will be shifted).
Goals:
- At the discretion of the trader, but not less than the level of risks.
3. Use case “Rebound from Fibo levels” (for intraday trading on weekly and monthly fibo levels)
Conditions for entry:
- Intraday resistance and support levels were formed more than 8 hours ago ;
- The price has reached the levels of 23.2 or 38.2 or 61.8;
- Depending on the direction of the price movement, the high or low is either higher (in a bullish scenario) or lower (in a bearish scenario), and the closing level is lower or higher than the fibo level (the price went over the level, but rebounded);
- The trade is entered at the close of the bar.
Risks:
- The stop is set at the level of the next fibo level.
Goals:
- At the discretion of the trader, but not less than the level of risks.
Mark Illioner
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