Pivot Points High Low & Missed Reversal Levels [LuxAlgo]

Pivot Points High/Low, sometimes referred to as "Bar Count Reversals" allows highlighting market prices local tops and bottoms. This method compares the price value at a certain index within a user-specified window length and tests whether it is the highest (pivot high) or lowest (pivot low).

This method can return successive pivots of the same type, thus missing certain reversals, as such, we aimed to highlight those missed reversals and provide a level at their location to determine if they had any significant role to play. A zig-zag is additionally built, connecting regular pivots with missed reversals.

Settings

• Pivot Length: Determine the "Bar Count Reversals" window size. higher values will highlight more significant reversals.
  

Other settings control the look of the displayed graphical elements within the indicator.

Usage

Missed reversals are highlighted by labels with a ghost emoji, a Zig-Zag line connecting a missed reversal is dashed. Note that labels are offset by -Pivot Length bars (with the exception of the most recent one), and as such are detected further ahead of their location.

When a missed reversal is detected, a level is displayed, starting at the location of the missed reversal and ending when a new missed reversal is detected.

These levels can be used as support and resistance.

The most recent label estimates the possible location of a confirmed reversal, and will continuously readjust whether price makes a new higher high/lower low depending on the type of previously detected pivot. A level is also made out of this estimated reversal.

Versionsinformation:

Minor changes.