Get started

Pivot

New Features For Dynamic Pivot Levels - Percentage indicatorIn our latest update, we’ve packed in some exciting new features and enhancements that will elevate your analysis experience to the next level: Exciting New Features: We’ve added additional Exponential Moving Averages (EMAs), allowing you to track five different EMAs tailored to your needs. But that’s not all – we’ve introduced smiley indicators that give you instant feedback on whether the price is above or below the moving average. Now you can analyze with a clean, clutter-free chart! Fibonacci Level Enhancements: We’ve upgraded the logic behind Fibonacci levels to give you more accurate insights. The improved Fibonacci calculations provide a clearer, more precise visual representation, helping you make better-informed decisions. A Sleek, Streamlined User Interface: We know how important it is to work with a smart, efficient tool, so we’ve revamped the user interface! Settings are now neatly organized into categories, allowing you to quickly and easily customize everything you need. This makes your workflow smoother and faster. This update doesn’t just bring new capabilities – it makes the tool more accessible and user-friendly than ever. It’s your key to staying focused on precision analysis, without the distractions!
NASDAQ:AMZNEducation
by The_Real_Hippopotamus
High LowSome corrections go for a third or even a fourth leg, so I prefer a different labeling system to account for this and discuss it later in the books. In its simplest form, it counts the legs of a pullback. For example, if there is a down leg in a bull trend or in a trading range and a bar then goes above the high of the prior bar, this breakout is a high 1. If the market then has a second leg down and then a bar goes above the high of a prior bar, the breakout bar is a high 2. A third occurrence is a high 3, and a fourth is a high 4. In a bear leg or in a trading range, if the market reverses back down after one leg, the entry is a low 1. If it reverses back down after two legs up, the entry is a low 2 entry and the bar before it is a low 2 setup or signal. Since measured moves are an important part of trading and the AB = CD terminology is inconsistent with the more commonly used ABC labeling, the AB = CD terminology should not be used. Also, I prefer to count legs and therefore prefer numbers, so I will refer to each move as a leg, such as leg 1 or the first push, and then leg 2, and so forth. After the chapter on bar counting in the second book, I will also use the high/low 1, 2, 3, 4 labeling because it is useful for traders.
FOREXCOM:XAUUSDEducation
by RezaBayat
How to Trade Support and Resistancesupport and resistance levels are crucial concepts that every trader needs to grasp. These levels represent key points on a chart where the price tends to reverse its direction. By analyzing historical price action, traders can identify these areas and strategize their trades based on how the price reacts upon reaching these levels. The Simplicity and Complexity of S&R While the idea of support and resistance is straightforward to understand, effectively trading these levels can be challenging due to psychological barriers and emotional involvement. Mastering support and resistance trading isn’t just about recognizing patterns; it’s also about understanding the human emotions driving those patterns. What is Support and Resistance Support is a price level where a currency’s downward trend is expected to pause due to a concentration of demand. It’s where buyers step in, viewing the currency as undervalued, thus preventing further price decline. The OANDA:XAUUSD chart above depicts a notable support level of 2031. Historically, when the price of Gold reaches this level, it tends to initiate an upward trajectory. Traders can identify potential trading opportunities at this juncture and consider establishing long positions after the confirmation signal, such as a break of structure, signs of a liquidity sweep, or the order block. Traders can also use the bullish candlestick pattern as an additional signal when considering support zones for buying opportunities. In the FX:EURUSD pair, there is a noteworthy support zone extending from 1.0648 to 1.0666. Over several instances, the price has consistently demonstrated a pattern of bouncing upward from within this range, as illustrated in the chart. Let’s see another example of support zones with stop-loss hinting. The price level at 1.08924 serves as a significant support zone; however, it’s important to note that smart money often orchestrates moves that trigger stop-loss orders before driving the price upwards. Later in this S&R trading guide, we’ll delve into a detailed discussion of the concept of stop-loss hunting, complete with illustrative examples. What is Resistance Resistance levels are price levels at which the price tends to move in a downward direction. Let’s analyze the chart provided above. The circled areas on the chart represent strong resistance zones where the price tends to move in a downward direction in the EURUSD pair. It’s worth noting that quite often, the price moves downward after triggering stop-loss orders in these areas. This phenomenon can be observed frequently in any currency pair. The Psychology Behind These Levels Fear and Greed: These are the two main emotions at play. At support levels, fear (of prices falling more) meets greed (for buying at a low price). At resistance levels, it’s the opposite; greed (for higher selling prices) meets fear (of prices dropping). Group Thinking: Many traders are watching the same levels. When a lot of people act the same way (buying at support or selling at resistance), it reinforces these levels. Self-Fulfilling Prophecy: Because so many traders are watching these levels, their reactions to them can make the support and resistance predictions come true. Formula of Support and Resistance Pivot Point Calculation The Pivot Point (PP) is calculated as the average of the high, low, and close prices of the previous trading period: Pivot Point (PP) = (High + Low + Close) / 3 First-Level Support and Resistance First Resistance (R1) This is calculated by doubling the pivot point, then subtracting the low of the previous period. First Resistance (R1) = (2 x PP) – Low First Support (S1) This is found by doubling the pivot point and subtracting the previous period’s high. First Support (S1) = (2 x PP) – High Second-Level Support and Resistance Second Resistance (R2) This level is calculated by adding the difference between the high and low of the previous period to the pivot point. Second Resistance (R2) = PP + (High – Low) Second Support (S2) This is determined by subtracting the difference between the high and low of the previous period from the pivot point. Second Support (S2) = PP – (High – Low) Third Level Support and Resistance Third Resistance (R3) Calculated by adding twice the difference between the pivot point and the low to the high. Third Resistance (R3) = High + 2(PP – Low) Third Support (S3) Found by subtracting twice the difference between the high and the pivot point from the low. Third Support (S3) = Low – 2(High – PP) These pivot point-based support and resistance levels are crucial tools for traders, providing potential points of market reversal or continuation. The pivot point is often seen as a marker of equilibrium between bullish and bearish market forces. The Phenomenon of Stop-Loss Triggers at These Points A stop-loss order is a tool used in trading to sell a security when it reaches a predetermined price, to limit potential losses. To understand how it relates to support and resistance, consider the following analogy: Think of trading as a game where you establish a rule: if your score drops below a certain point, you decide to exit the game to prevent further losses. This rule resembles the concept of a “stop-loss” in trading. Now, picture a scenario involving seasoned players, often represented by large funds, who aim to maximize their gains in the game. They observe that many players have set their exit points at a specific level, such as 100 points. These experienced players intentionally create the impression that the game’s score is approaching that critical 100-point level. As the score gets closer to 100 points, other players become anxious and decide to exit the game (activating their stop-loss orders) to avoid more significant losses. This sudden mass exit results in a sharp decline in the game’s score. Smart money takes advantage of this situation by purchasing more points at the lower price they anticipated. After acquiring these points at a discounted rate, they allow the game’s score to rebound, ultimately profiting when it reaches higher levels. In essence, this illustrates how Informed Money, often represented by large funds, may manipulate the market by creating the illusion that prices are nearing significant support or resistance levels. This can trigger the activation of stop-loss orders by other traders, enabling the seasoned players to capitalize on lower prices before the market resumes its upward trajectory. Trading Strategy for Support and Resistance When trading support and resistance make decisions on their base consider the following points. Identify Support and Resistance in Larger Time Frames: Locate these levels in extended time frames like H1, H4, and D1 to gain a clear understanding of the market’s pivotal points. This approach not only clarifies your perspective when trading in smaller time frames but also reduces confusion. Confusion often arises from too many levels, making it challenging to determine which levels present viable trading opportunities. Patience: Wait for the price to reach these levels and look for additional signals. Utilize Bearish and Bullish Candlestick Patterns: Employing candlestick patterns at these levels aids in decision-making and enables traders to strategically set take-profit and stop-loss orders. Develop a Trading Bias: Establish a daily bias at the beginning of each week to assist in deciding whether to take long or short trades. Focus only on those levels that align with your trading bias. In conclusion, discipline is paramount in trading. It’s essential to avoid overtrading and adhere strictly to your established trading plans. Using stop-loss orders is crucial in managing risk and protecting your capital. Additionally, limiting your focus to a fixed set of currency pairs allows for a more in-depth understanding of their market dynamics, leading to more informed trading decisions. Remember, consistency and discipline in following these practices can significantly enhance your trading effectiveness and help in achieving long-term success. how to identify strong support and resistance Historical Price Levels: The most basic method is to look at historical price charts. Strong support and resistance levels are often at prices where the market has repeatedly reversed or consolidated. These levels are more significant if they have been tested multiple times. Round Numbers: Psychological levels often play a crucial role in trading. Prices such as 1.3000 in EUR/USD or 100 in USD/JPY are examples where traders might expect support or resistance.
Education
by Golden_Star1994
3
Using Pivot Points for Forex TradingIn the forex market, pivot points have long been a staple in the toolkit of forex traders, serving as key indicators into market sentiment and potential price action. Rooted in simple mathematics, they offer actionable insights into support and resistance levels. This article delves into the utility of pivot points in various strategies, including intraday, swing, and trend analysis. Understanding Pivot Points in Trading Pivot points serve as essential markers for traders. Understanding these levels is vital as they can signify potential turning points in price movement. When the market price is above the pivot point, traders generally expect bullish behaviour, eyeing the point as a support level. Conversely, if the market is below the point, it's often considered bearish, with the pivot point acting as resistance. These points are calculated based on the high, low, and closing prices of the previous trading session. The result serves as the "pivot" or the central point around which activity could revolve during the upcoming session. Think of them as the average price that acts as a balance between buyers and sellers. The basic pivot point calculation in trading is as follows: Pivot Point = (High+Low+Close)/3 There are various types, with the most commonly used being the Traditional pivot points. Others, like Camarilla and Woodie, provide additional flexibility and methods of calculation. But the core concept remains the same: they are used to identify crucial support and resistance levels. Most of the best trading software have forex pivot point calculators built-in, overlaying the indicator on price charts. FXOpen’s free TickTrader platform, for example, offers several of the best pivot point indicators, including Camarilla and Woodie’s points. You can also use the pivot calculator for stock CFDs. Using Pivot Points for Intraday Trading Intraday trading involves buying and selling financial instruments within the same day. For these short-term trades, this indicator can be invaluable in gauging market sentiment. Traders commonly use them to identify support and resistance areas for the day. These levels serve as potential thresholds where a price could reverse its direction. To apply them intraday, first, determine the pivot point using the previous day's data. Once calculated, it helps to plot the point along with resistance and support levels above and below it, generally referred to as R1, R2, S1, and S2. Bullish: A bullish sentiment might prompt a trader to buy near the first support (S1) and target the first resistance (R1) or starting pivot (P). Bearish: Conversely, a sell signal could be near the first resistance (R1) while targeting the first support (S1) or initial pivot (P). Applying Pivot Points for Swing Trading Swing trading aims to capture gains over a period of several days to weeks by analysing the momentum of financial markets. Pivot points are just as applicable here, but traders usually consider longer timeframes like hourly, daily or weekly charts. For the most part, the same principles apply here as with the intraday approach: the first resistance (R1) and support (S1) levels often provide a reaction. However, in the swing technique, the focus can shift to secondary or even tertiary areas (R2, R3, S2, S3) to account for extended price movements. To effectively swing trade with them, traders consider the larger market context. Are macroeconomic factors supporting the expected movement? Is there a strong volume to sustain the price to the targeted levels? These are important aspects to consider before making a decision. Using Pivot Points for Trend Analysis One of the critical tasks for traders is to identify prevailing trends, and the use of pivot points in trading can be particularly beneficial in this context. When prices consistently stay above the central pivot, it generally suggests a bullish trend. On the other hand, prices lingering below the line often indicate a bearish sentiment. To gauge the strength of a trend, traders may look beyond the main pivot to additional support and resistance levels. In a strong uptrend, for example, you might see the price break through the first and second resistance areas (R1, R2), reinforcing the bullish momentum. Similarly, a consistent failure to move above a particular resistance or dropping below a certain support can indicate a trend's weakening or reversal. While they alone should not be the sole criterion when analysing trends, they offer a robust and straightforward way to get an initial read on market direction. Advanced Techniques As traders gain experience, they often seek more nuanced strategies to enhance the accuracy of their trade decisions. Advanced techniques offer such options. Using Multiple Timeframes One approach is to apply this tool to multiple timeframes, say hourly and daily charts. This multi-layered analysis can provide a more comprehensive view of market behaviour. Combining with Other Technical Tools Another effective technique involves integrating pivot points in forex with other technical indicators like Moving Average Convergence Divergence (MACD) or the Relative Strength Index (RSI). For instance, a point aligning with a 50% Fibonacci level can provide a stronger signal for entry or exit. Extending the Levels In volatile markets, traders may also extend their analysis to the fourth and fifth levels of support and resistance (R4, R5, S4, S5). These extreme areas are less commonly reached but can offer significant profit potential when they are. The Bottom Line Pivot points offer an effective, straightforward method of gauging market trends and potential entry and exit points. As you've seen, they can be applied in multiple scenarios, from intraday to swing trading. If you're interested in incorporating these techniques into your trading strategy, consider opening an FXOpen account. Once you do, you’ll be able to access dozens of forex markets to deploy your new-found knowledge in. Good luck! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
📈📊 Detecting Liquidity: Pivot Points and Trading ReversalsGreetings, fellow traders! Today, let's delve into the fascinating world of liquidity, pivot points, and how they can be essential elements in your trading strategy. Understanding the relationship between these factors can provide you with valuable insights into potential price reversals and market sentiment. 💡📈 🤔 What is Liquidity? Liquidity refers to how easily and quickly an asset can be bought or sold without significantly affecting its price. In the context of trading, liquidity often clusters at specific price levels, creating zones where many orders are concentrated. These zones can act as critical points of interest for traders. 🔄 Pivot Points and Liquidity: Pivot points are technical indicators calculated from previous price data, typically using the high, low, and close prices. They provide potential support and resistance levels, but they also reveal where liquidity might accumulate. 🔍 Liquidity Pools: Liquidity often pools around pivot points, creating liquidity pools. These pools represent price levels where a large number of buy and sell orders are clustered. Traders pay close attention to these levels as they can signal significant price reactions. 🚀 Trading Liquidity and Reversals: Here's how you can leverage liquidity and pivot points in your trading strategy: Identify Pivot Points: Use technical analysis tools to identify pivot points on your chart. There are various pivot point calculation methods, such as Standard, Fibonacci, or Camarilla. Choose the one that aligns with your trading style. Focus on Confluence: Look for confluence between pivot points and other technical indicators, such as trendlines, moving averages, or RSI. When multiple factors align at a specific price level, it strengthens the significance of that level. Observe Liquidity Zones: Pay attention to areas where liquidity is concentrated. These zones can act as magnets for price action. When price approaches a liquidity pool, it's more likely to experience significant movement. Spotting Reversal Signals: Reversals often occur near pivot points, especially if there's a confluence of factors. Look for candlestick patterns, divergence in oscillators, or other reversal signals to confirm a potential change in trend direction. Risk Management: Always implement proper risk management strategies. Set stop-loss orders to limit potential losses if the market moves against your position. 🌐 Conclusion: Understanding liquidity and pivot points can provide you with a unique perspective on market dynamics. By identifying liquidity pools and watching for reversal signals around pivot points, you can make more informed trading decisions. However, remember that no strategy is foolproof, and risk management is paramount. Keep refining your skills and adapt to ever-changing market conditions. 🔄📈
Education
by AlexWhale
1
Introducing the Responsive Supply and Demand IndicatorIn this comprehensive tutorial, Stock Justice offers an insightful walkthrough of the enhanced Supply and Demand Indicator. We delve into the tool's advanced features, demonstrating its capacity to identify pivot points across multiple timeframes, its customization options, and ways to interpret its outputs. The video provides valuable guidance on how to navigate the settings of this powerful tool, from plotting circles and lines to adjusting the number of ranges to be analyzed. By the end of this tutorial, users will better understand how to utilize the Supply and Demand Indicator to optimize their trading strategy and make more informed decisions.
CME_MINI:ES1!Education
by StockJustice
Trade Ascending Parallel Channel With 3 Points + Pivot PointTrade Ascending Parallel Channel With 3 Points + Pivot Point Indicator Connect your three points using the parallel channel. First, connect two points which are your higher lows. Next, connect the third point which is the swing high. The swing high is the higher high. In this example, a pin bar formed at the higher low. Pin Bar wick touches pivot point level and channel support level. Volume Indicator is "green" and pin bar is "white." Conditions are great to enter the market at pin bar closing price.
Education
by TradeLive-
Special Entry Patterns - IPO'sJS-TechTrading Masterclass : Special Entry Patterns - IPO's In a previous tutorial, I have explained the general characteristics of a perfect buy point. In this tutorial, we will look at IPO's (Initial Public Offerings) and discuss how to identify primary bases. IPO's coming out of primary bases can make huge price moves - let's discuss how to find the next monster mover, similar to what stocks like Amazon could achieve after their Initial Public Offering phase. Perfect Entry Points – IPO’s – The Primary Base When it comes to investing in IPO stocks, new issues don't play by the usual rules. Companies making initial public offerings draw a lot of investor attention. That often results in unusual and brand-new chart patterns. Volatility can rise as investors size up demand for the new stock. Yet there are opportunities in these cases, if you can spot the correct characteristics amid the price-and-volume action. The framework of a good IPO base is simple. The decline from peak to low usually doesn't top 20%, but the most volatile markets have produced declines of up to 50%. The length is often less than five weeks and can be as short as seven days. These two factors alone make IPO bases wayward cousins compared with proper bases, such as the cup with handle and flat base, which need at least five to seven weeks of work. In an IPO base, the pattern typically starts within 25 days of the stock's first day of trading. Know the important similarities with regular bases. For example, the buy point is drawn by taking the prior high and adding 10 cents. The price gain on the breakout should be strong. There are ways to evaluate these blind spots, however. Important factors include seeing a shallow correction within the base during normal market conditions, a large increase in price and a close near session highs on the breakout day, and heavy volume on the breakout day and week. Also, the stock should generally form the base above its IPO price. Example - ServiceNow (NOW) The business software company, went public in June 2012, at 18 a share and has built its primary base during the period from the initial offering to April 2013 when the stock developed its first perfect buy point.
Education
by JS_TechTrading
JS-Masterclass #6: The Perfect Buy PointThe Perfect Buy Point A Perfect Buy Point represents the completion of a stock’s consolidation and the potential start of its next advance. After a base pattern has been established, the Perfect Buy Point is where the stock establishes a price level that will act as the trigger to enter a trade. When a stock’s price level moves through the Perfect Buy Point, there is a high probability that this represents the start of the next advancing phase. You can also call the Perfect Buy Point a “call to action” price level – it is the optimal buy point. In the context of a stock’s Volatility Contraction Pattern, a temporary pause (also called a base building process) allows you to set a buy stop to enter a trade. You want to buy as close to thePerfect Buy Point as possible without chasing the stock up more than 1.0%. In this context, the use of buy stop limit orders is recommended. As a solid consolidation process and the formation of a Volatility Contraction Pattern are needed before a Perfect Buy Point can occur, The Perfect Buy Point can also be considered as the line of least resistance. A stock can move very fast once it crosses this threshold. When a stock breaks through the line of least resistance, the probability is high that the price level will move much higher in a short period of time. This is the case because this represents an area where supply is low. Therefore, even a small amount of demand can move the stock higher. The importance of the Volume at the perfect Buy Point A Volatility Contraction Pattern is needed before a Perfect Buy Point can develop. As explained earlier, supply will stop coming to market at the ed of a valid Volatility Contraction Pattern. This is why we want to see the Volume significantly come down in the day or the couple of days before the Perfect Buy Point develops. Now, with only very little supply of stock in the market from sellers, even a small amount of buying can move the price up very rapidly as the price level moves through the Perfect Buy Point. In the ideal case, this move through the perfect Buy Point occurs under heavily increasing volume. This might be an indication that big institutions are putting their big money into the stock. When all of this comes together, you want to place the order as close to the Perfect Buy Point as possible. Always wait for the price level to move through the Perfect buy Point! Some traders will try to get in before the breach of the pivot point to save a few pennies on the trade. Assuming that a stock will break out is dangerous and the breakout may fail. Be patient! Remember Even if you respect all these technical requirements of a Perfect Buy Point, you will still get stopped out and incur losses. BUT: Trading is all about probabilities…respecting these rules will increase your probability to enter profitable trades and significantly outperform other traders and increase your chances to be consistently profitable in the market.
Education
by JS_TechTrading
2
EURHUF - Good Example of using Pivot PointsI've been trading for over 7 years and I've come to love pivot points! I see pivot points being used constantly and i just wanted to show you EURHUF on a 15 minute chart as an example. When the US market opened they made big moves around yesterday's price level until it hit the first support level. I use pivots to scalp the market so i can compound my longs and shorts to make up for any losses that may have happened! Pivots are usually only used in day or swing trading on the 1 minute, 5 min and 15 min charts. Zoom out to multiple time frames to check the trend and then take orders only in the direction of the trend to have some confluence going on. Don't just take trades blindly without fully being aware of what's going on. Make sure you read all and any economic news that is out there!! NOTE: Pivots don't always work but for the most part you can see them being used here in real time. (This is just a guide to show you how pivots are used, this is not a trading signal) I don't mind sharing because i want all of us 5% to make some so the big can loose some :)
Education
by JasonLeighton
How to Calculate a Pivot point.In this quick tutorial I have shown how you can take the formula (high+low+close)/3 to create a dynamic support and resistance level, which you can use to make trading decisions, only buy above pivot and sell below. Now it is handy to have an indicator to do this manually for you everyday, as every day a new pivot is generated. This pivot will filter down possible bad entries by putting you the right side of the trend, wait for breaks of this level to tell you potential trend changes... If anyone is interested I could do a tutorial on how to create the Support 1, 2, 3 and Resistance 1,2,3 levels... at the end of the day nothing wrong with learning the mechanics of your trading system! Pivots can work extremely well on an intraday timeframe, 1m,5m,15m charts will often see trades appear around these levels.. Keep strong and prosper. ZenFlo
Education
by ZenFlo
Continuing Updated Renko Trading StrategyIncorporating a timeframe into the Renko Strategy The Renko charts on Trading view with the plan that I'm enrolled in will allow for a Renko chart's timeframe from 1 minute to 1 day or longer. Although Renko charts are supposed to factor out time, a timeframe is still used to 'set' the block which is an important concept to the trading strategy When publishing an initial idea in TV, you have to have a timeframe of at least 15 minutes. This isn't what I typically use but do so to accommodate TV. On individual charts, I will use a TF between 5-11 minutes depending on the market's volatility. If the timeframe is set to a small number, the Renko block will be set sooner and could lead to churn in the strategy while having a timeframe set to a larger number will delay the setting of the block which can lead to missed entries or exits. Using a combo of larger block sizes and higher timeframes of 5-11 minutes have seemed to provide good setups for the option trading strategy I use (buying Puts/Calls simple strategy based on market direction) The web has good articles on discovering patterns and levels of resistance/support using Renko charts. Another important concept with good discussions on the web is pivot points ( pivotboss.com ) My current strategy is to combine the current configurations of Renko charts with their weekly counterparts with yearly pivots (traditional and camarilla). In the book on Pivot Points (see pdf), There is an excellent chapter on pivot point analysis and % of probabilities in price action against the levels. I believe that incorporating these yearly pivots side-by-side and the Renko charts and their indicators plus the Linear Regression indicators provide a good foundation for an option trading strategy of simple buying of puts/calls. Referring to the btcusd chart, I've overlayed the 2022 traditional s1 and the camarilla s4 on the Renko chart. Looking at the DEMA 12/20 averages, they're currently split in a bullish position (12 over 20). The 12-May low tested the 2022 S1 level which coincided with the 2nd STD low. This action could be setting up a support level the market could push off. I don't trade btcusd but track it because the market moves 24x7 which provides a lot of training material to learn for other markets.
BITSTAMP:BTCUSDEducation
by mxb1961
1
The easiest way to use divergences in your own Pine strategiesDetecting divergences in a Pine indicator / strategy is easy. You simply have to compare the pivot lows and the pivot highs on the price and the oscillator, and if you can identify a difference between the last & previous pivots made on the price and the oscillator, you have likely found a divergence. Using this theory, here is an example how you would detect a Regular Bearish divergence: While the theory of divergence detection is simple, more often than not, things go wrong (the divergence indicator used in the example below is TradingView's built-in Divergence Indicator ): Would you identify this as a divergence? If not, why not? Is it because the divergence line is slicing through the candles? Or because the line is slicing through the oscillator? Or something else? Wouldn't it be great if somehow you could filter out invalid divergences from code, such as this one? We at Whitebox Software were wondering about the same thing, and decided to find a solution to this problem. This is when we realised that while detecting divergences is easy, detecting valid divergences is hard... After several months in development, we are proud to present to you our divergence indicator called The Divergent . The Divergent is an advanced divergence indicator with over 2500 lines of Pine Script, exposing over 30 different configuration options, including 9 built-in oscillators, to allow you to tweak every aspect of divergence detection to perfection. For example, the Line of Sight™ filter in The Divergent would have easily filtered out this invalid divergence above. The Line of Sight™ filter will notice any interruption to the divergence line connecting the price or the oscillator, and will treat the divergence as invalid. This filter is one of many, which has been created to reduce the false positive detections to a minimum. (In later publications, we will discuss each and every filter in detail). Alright, so The Divergent knows how to detect accurate divergences, but how is it going to help you detect divergences in your own Pine strategy? The Divergent is not simply a divergence indicator - it can also emit divergence signals * which you can catch and process in your own strategy. You can think of The Divergent being a DaaS ( D ivergences a s a S ervice)! * Please note, that divergence signals is a Pro only feature. To use the signals, simply place The Divergent onto the same chart you have your strategy on, import "The Divergent Library" into your code, link your strategy to The Divergent using a "source" input, and act on the signals produced by The Divergent ! Here is a simple strategy which incorporates divergence signals produced by The Divergent in its entry condition. The strategy will only open a position, if the moving average cross is preceded by a regular bullish or bearish divergence (depending on the direction of the cross): //@version=5 strategy("My Strategy with divergences", overlay=true, margin_long=100, margin_short=100) import WhiteboxSoftware/TheDivergentLibrary/1 as tdl float divSignal = input.source(title = "The Divergent Link", defval = close) var bool tdlContext = tdl.init(divSignal, displayLinkStatus = true, debug = false) // `divergence` can be one of the following values: // na → No divergence was detected // 1 → Regular Bull // 2 → Regular Bull early // 3 → Hidden Bull // 4 → Hidden Bull early // 5 → Regular Bear // 6 → Regular Bear early // 7 → Hidden Bear // 8 → Hidden Bear early // // priceStart is the bar_index of the starting point of the divergence line drawn on price // priceEnd is the bar_index of the ending point of the divergence line drawn on price // // oscStart is the bar_index of the starting point of the divergence line drawn on oscillator // oscEnd is the bar_index of the ending point of the divergence line drawn on oscillator = tdl.processSignal(divSignal) bool regularBullSignalledRecently = ta.barssince(divergence == 1) < 10 bool regularBearSignalledRecently = ta.barssince(divergence == 5) < 10 float slowSma = ta_sma(close, 28) float fastSma = ta_sma(close, 14) longCondition = ta.crossover(fastSma, slowSma) and regularBullSignalledRecently if (barstate.isconfirmed and longCondition and strategy.position_size == 0)   strategy.entry("Enter Long", strategy.long)   strategy.exit("Exit Long", "Enter Long", limit = close * 1.04, stop = close * 0.98)   shortCondition = ta.crossunder(fastSma, slowSma) and regularBearSignalledRecently if (barstate.isconfirmed and shortCondition and strategy.position_size == 0)   strategy.entry("Enter Short", strategy.short)   strategy.exit("Exit Short", "Enter Short", limit = close * 0.96, stop = close * 1.02) plot(slowSma, color = color.white) plot(fastSma, color = color.orange) One important thing to note, is that TradingView limits the number of "source" inputs you can use in an indicator / strategy to 1, so the source input linking your strategy and The Divergent is the only source input you can have in your strategy. There is a work around this limitation though. Simply convert the other source inputs to have a string type, and use a dropdown to provide the various sources: string mySource = input.string("My source", defval = "close", options = ) float sourceValue = switch mySource   "close" => close   "open" => open   "high" => high   "low" => low   => na --- This is where we are going to wrap up this article. We hope you will find the signals produced by The Divergent a useful addition in your own strategies! For more info on the The Divergent (Free) and The Divergent (Pro) indicators please see the linked pages. If you have any questions, don't hesitate to reach out to us either via our website or via the comment section below. If you found value in this article please give it a thumbs up! Thank you!
Education
by WhiteboxSoftware
2
How to use Pivot points Indicators to our advantage!Hi every one A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment. The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction A pivot point is an intraday technical indicator to identify trends and reversals commonly used in equities, commodities, and forex markets. Pivot points are calculated to determine levels in which the sentiment of the market could change from bullish to bearish, and vice-versa. Day traders calculate pivot points to determine levels of entry, stops, and profit-taking by trying to determine where the majority of other traders may be doing the same The pivot point indicator can be added to a chart, and the levels will automatically be calculated and shown. Here's how to calculate them yourself, keeping in mind that pivot points are predominantly used by day traders and are based on the high, low, and close from the prior trading day. If it is Wednesday morning, use the high, low, and close from Tuesday to create the pivot point levels for the Wednesday trading day. After the market closes, or before it opens the next day, find the day's high and low, and the close from the most recent previous trading day. Sum the high, low, and close and then divide by three. Mark this price on the chart as P. Once P is known, calculate S1, S2, R1, and R2. The high and low in these calculations are from the prior trading day. What Do Pivot Points Tell You? Pivot points are an intra-day indicator for trading futures, commodities, and stocks. Unlike moving averages or oscillators, they are static and remain at the same prices throughout the day. This means traders can use the levels to help plan out their trading in advance. For example, they know that, if the price falls below the pivot point, they will likely be shorting early in the session. If the price is above the pivot point, they will be buying. S1, S2, R1, and R2 can be used as target prices for such trades, as well as stop-loss levels. We hope that you've learn something with this post . Have a nice day and Good luck.
COINBASE:BTCUSDEducation
by CobraVanguard
7
EDUCATION: Pivot LevelsHello, dear subscribers! Today we are going to talk about one of the most useful indicators in cryptotrading - pivot levels(points). We have already considered the lagging and leading indicators and decided that the second one is the most valuable. Definition Pivot levels is the leading indicator which define the potential pivot levels for the next trading period (in our example - month). The formulas for the levels calculation you can see on the picture. It is known that when the price is up of the central pivot - the market is in the uptrend, if the opposite - in the downtrend. How to trade with pivot levels It is great to use pivot level with some lagging indicator to confirm the entry points. This indicator can give the information about levels when the price can bounce off or reverse. You can see the points with small red arrows where the price bounced off pivot levels and went down after it - this points can be used for the short position. The green arrows demonstrate the potential price growth points. But there are also a lot of breakpoints (blue circles), to avoid the trade execution next to these point you need to use some confirmation with lagging indicator. Summary 1)Define the trend direction 2)Open short if downtrend, long - if uptrend 3)Define the entry points next to pivots 4)Find the confirmation with some lagging indicator to avoid the pivot break points 5)Execute the trade, set the sloploss level Good luck!
Education
by Skyrexio
How to use yearly pivotsYearly pivots are among my top favourite tools. Nearly all the major reversals or rallies stop or turn at yearly pivots. You can also use them as targets when you see price is heading or is close to yearly pivot. It will surely hit it. You can observe it for yourself on this EURUSD chart. When price is above yearly pivot target R1 if below target S1. Watch also Yearly Midpivots (they are also very important). It is good to use long term moving averages along with yearly pivots to detect the long term trends. To apply yearly pivots use - choose "pivot points standard" then choose yearly classic, set period to 2 last years, unclick R3 S3 as price rarely makes it those (unless it is a super volatile pair). For mt4 you can download free indicator "yearly pivots". Good Luck!
Education
by ICFX
Simple pivot strategyFree money. Price usually never misses daily pivot. And if price does miss pivot during a day - it will come back to that level sometime later. God knows when but it will. This applies to all pairs but works very well in gold as you see. If you see price open with a gap away from the daily pivot - you can safely target daily pivot 90 percent of time it will hit it. Those 10 percent of times when price might miss a pivot happen during the strong trends. Actually a missed daily pivot or two marks a START of a strong TREND. Test various instruments yourself and just get convinced. The same applies to weekly and monthly pivots. With missed weekly pivots you can catch dozens of pips. GOOD LUCK!
OANDA:XAUUSDEducation
by ICFX
4
Today Pivot Points Support and Resistance | Try itI calculate the important lines of support and resistance in my own way. They are good for determining the end or beginning of new trends, as well as for intraday trading and swing trading. In any case, this is a very important confirming moment for my trading strategy. Try it and tell me your opinion. Thank! TICKER S3 S2 S1 Pivot Point R1 R2 R3 EUR/USD 1.072 1.077 1.08 1.086 1.09 1.095 1.1 USD/JPY 106.572 106.967 107.213 107.673 108.019 108.396 108.753 GBP/USD 1.223 1.23 1.236 1.243 1.25 1.255 1.261 AUD/USD 0.62 0.625 0.63 0.634 0.64 0.643 0.648 USD/CHF 0.959 0.962 0.966 0.969 0.973 0.976 0.979 NZD/USD 0.584 0.59 0.593 0.599 0.604 0.609 0.614 USD/CAD 1.384 1.393 1.4 1.409 1.418 1.425 1.433
Education
by MinnieTrading
4