Pivot Points System

Overview

The Pivot Points system calculates and displays standard pivot point levels based on the previous day’s high, low, and close prices. These levels act as dynamic support and resistance zones for intraday trading.

Hourly Chart with Daily Pivots and Bollinger Bands

Example of pivot points displayed on an hourly chart showing R1, Pivot, S1, and S2 levels as support/resistance zones

Pivot Levels

Standard Pivot

Formula: (High[1] + Low[1] + Close[1]) / 3
Display: Orange solid line
Purpose: Primary pivot level - acts as support/resistance

Resistance Levels

R1 (Resistance 1)

Formula: 2 * Pivot - Low[1]
Display: Orange dotted line
Purpose: First resistance level above pivot

Support Levels

S1 (Support 1)

Formula: 2 * Pivot - High[1]
Display: Orange dotted line
Purpose: First support level below pivot

S2 (Support 2)

Formula: Pivot - (High[1] - Low[1])
Display: Orange dotted line
Purpose: Second support level below pivot

Visual Display

Lines

Pivot: Solid orange line (width: 1)
R1, S1, S2: Dotted orange lines (width: 2)
Length: Extends 3 bars forward from current bar

Floating Label

Location: Right side of chart (offset configurable)
Content: Shows all pivot levels with values
Format: R1: X.XXX \Pivot: X.XXX \S1: X.XXX \S2: X.XXX
Color: Orange background, white text

Configuration Options

Display Settings

Show Pivot Labels: Toggle floating label display
Line Width: Adjustable (default: 1)
Remove Floats: Option to hide floating labels

Visual Customization

Line Style: Dotted for R1/S1/S2, solid for pivot
Line Color: Orange (customizable in code)
Label Position: Configurable offset from current bar

Trading Applications

Support/Resistance Levels

Pivot: Acts as primary support/resistance
R1: Resistance level for long entries
S1: Support level for short entries
S2: Stronger support level

Breakout Trading

Price Above R1: Bullish breakout signal
Price Below S1: Bearish breakdown signal
Price Between Pivot and R1/S1: Range-bound trading

Intraday Trading

Morning Setup: Use pivot levels for first hour trading
Range Trading: Trade between S1 and R1
Breakout Trading: Enter on breaks of R1 or S1

Technical Details

Calculation

// Previous day's data
highPrevDay = high[1]
lowPrevDay = low[1]
closePrevDay = close[1]

// Pivot calculation
pivot = (high[1] + low[1] + close[1]) / 3
r1 = 2 * pivot - low[1]
s1 = 2 * pivot - high[1]
s2 = pivot - (high[1] - low[1])

Line Drawing

Lines are drawn from current bar extending 3 bars forward
Uses line.new() for dynamic line creation
Previous lines are deleted before creating new ones

Best Practices

Daily Reset: Pivot levels reset each day based on previous day’s data
Combine with Other Indicators: Use with volume, EMA clouds, or structure
Watch for Bounces: Price often bounces off pivot levels
Breakout Confirmation: Wait for volume confirmation on breaks
Multiple Timeframes: Check pivot levels on different timeframes