ATR-Adjusted Pivot Levels for Accelerated Breakout Detection

Summary

This indicator marks pivot highs and lows, then tracks them as potential market-structure boundaries. Between new pivots, it moves the high boundary down and the low boundary up by an ATR-scaled amount each bar. A price crossing a boundary registers a bullish or bearish break, increments that direction’s count, resets the opposite count, and draws three extension levels beyond the break using a separate ATR-scaled deviation setting.

The script exposes pivot length, adjustment angle, deviation size, colors, and label size. It retains and extends the latest deviation set, deleting an older set when a new one is created. The document describes the indicator’s construction and intended chart uses, but provides no performance tests or evidence that crossings predict profitable trades. Pivot confirmation requires later bars, and the ATR-based boundary adjustment and extension levels are visual parameters rather than validated entry, exit, or risk rules.

Key ideas

• Pivot highs and lows establish the initial upper and lower structure levels.
• Between new pivots, an ATR-scaled adjustment gradually moves each level toward price.
• Crossings of the tracked levels increment directional break counts and reset the opposite count.
• Each break projects three ATR-scaled deviation levels beyond the crossed boundary.
• The document gives no backtest or evidence that the signals produce profitable trades.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.