A Pocket Pivot Screen Using Uptrend and Relative Volume Conditions
Summary
This indicator description adapts the pocket pivot concept associated with Chris Kacher and Gil Morales. It flags an up day when the close is above a longer-term moving average and the day's volume exceeds the largest volume seen on a down day in the recent lookback. Additional filters include a minimum price and average volume, a close at or above a moving average, and optional checks for moving-average alignment, closing in the upper half of the day's range, consolidation, and distance from recent highs. Several optional conditions are effectively disabled in the provided formula.
The author presents pocket pivots as signs of accumulation or re-accumulation during rising trends and displays signals as blue histogram bars. The material supplies screening logic but no backtest, trade exits, position sizing, or evidence that the signals predict returns. Thresholds and implementation details may need review before use, and the post does not discuss transaction costs or false signals.
Key ideas
- A pocket pivot signal requires an up day with volume above the largest volume on a recent down day.
- The screen also checks for an established uptrend and minimum price and trading activity.
- Optional filters cover moving-average crosses, short-term trend, daily range position, consolidation, and recent highs.
- The indicator is framed as a possible sign of accumulation, but no predictive evidence or backtest is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.