Measuring How Often Price Crosses the Previous Bar’s Pivot

Summary

This indicator estimates how often a bar trades through a pivot calculated from the preceding bar. For each eligible bar, it takes the prior high, low, and close to form their average, then checks whether the current bar’s range contains that level. Each qualifying bar adds one to a running count. The count is divided by the number of bars considered and expressed as a percentage.

The measure describes historical frequency across the loaded chart; it does not forecast whether a pivot will hold, reverse price, or attract future trading. The document provides the calculation logic but no market, timeframe, sample results, or comparison against a benchmark. The strict range check also excludes cases where the pivot equals the current high or low, and the percentage depends on the bars included in the chart.

Key ideas

• The pivot is the average of the previous bar’s high, low, and close.
• A bar counts when its range strictly contains the previous bar’s pivot.
• The indicator reports qualifying bars as a share of the bars considered.
• The result is a historical frequency measure and does not establish predictive value.
• Equality between the pivot and a current bar boundary is not counted.

Tags

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