Pivot Channel Breaks [BigBeluga]

Aug 9

Pivot Channel Break

The Pivot Channel Break indicator identifies key pivot points and creates a dynamic channel based on these pivots. It detects breakouts from this channel, providing potential entry and exit signals for traders.




🔵How to Use

1. Channel Identification:
   - Upper and lower channel lines drawn based on pivot highs and lows
   - Channel width dynamically adjusted using ATR-like calculation
   
2. Breakout Signals:
   - Upward breakout: Price closes above upper channel line
   
   
   - Downward breakout: Price closes below lower channel line
   
   - Signals shown as X marks on the chart
   
   
3. Pivot Points:
   - High pivots marked with "H" triangles
   - Low pivots marked with "L" triangles
   
4. Support & Resistance:
   - Optional signals when price touches but doesn't break channel lines
   
5. Trend Visualization:
   - Optional bar coloring based on the most recent breakout direction
   

🔵Customization
• Pivot Right: Lookback period for pivot detection (default: 10)
• Pivot Left: Forward period for pivot confirmation (default: 40)
• Channel Width: Multiplier for channel width calculation (default: 1.0)
• Support & Resistance Signals: Toggle additional touch signals
• Bar Color: Enable/disable trend-based bar coloring



Calculation:

1. Detect pivot highs and lows using specified lookback periods
   
2. Calculate channel basis using 10-period SMA of close prices
   
3. Determine channel width using ATR-like calculation: RMA(high - low, 10) * width multiplier
   
4. Set channel lines based on pivot points and calculated deviations
   
5. Identify breakouts when price crosses beyond channel lines
   

The Pivot Channel Break indicator offers a dynamic approach to identifying potential trend changes and breakout opportunities. It combines pivot point analysis with a flexible channel calculation, providing traders with a visual tool for market structure analysis. Use this indicator in conjunction with other technical analysis methods to confirm signals and manage risk effectively.