Bar Count Reversals Using High and Low Pivot Points

Summary

The document explains a pivot point method, also called a bar count reversal, for marking possible turning points in price. A pivot high is a bar whose high exceeds the highs of a specified number of bars on both sides; a pivot low is a bar whose low is below the lows on both sides. The accompanying indicator logic compares the candidate bar with bars before and after it, then reports the candidate’s high or low when the required comparisons hold.

The text gives a period-five example that requires eleven bars, including the candidate and five bars on each side. It also describes a default period of ten, though the stated relationship between the period and calculation window is not fully clear alongside the code’s indexing. Because confirmation requires subsequent bars, the method identifies pivots retrospectively rather than at the turning point in real time. The document supplies no tests, market examples, or performance evidence, so it does not show whether these signals are profitable or robust across assets and timeframes.

Key ideas

• A pivot high is identified by lower highs on both sides of a candidate bar.
• A pivot low is identified by higher lows on both sides of a candidate bar.
• The period controls how many neighboring bars are checked to confirm a pivot.
• Confirmation requires future bars, so a pivot is known only after some delay.
• The document provides no empirical evidence that the indicator improves trading results.

Tags

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