Pivot-Based Reversal Entries with Stop Orders

Summary

This reversal strategy detects pivot highs and pivot lows using configurable left- and right-bar lookback settings. When a pivot high is confirmed, it places a stop order for a long entry just above that pivot; after a pivot low, it places a stop order for a short entry just below the pivot. The script retains the latest relevant pivot level and stops treating it as an active entry reference after price moves beyond it. The author also suggests using the signals alongside intersections of two Hull moving averages, but the document provides no backtest results or evidence that this combination improves accuracy.

Pivot confirmation requires bars on both sides of a turning point, so signals are delayed by the confirmation process. The script specifies entry logic but does not define explicit stop-loss or profit-target rules. It also gives no position-sizing method or market-specific evaluation. Traders would need to assess order behavior, execution assumptions, and risk controls before drawing conclusions about performance.

Key ideas

• The script identifies pivot highs and lows using configurable lookback bars on each side.
• It places stop-entry orders just beyond the latest confirmed pivot level.
• The author suggests combining the reversal signals with intersections of two Hull moving averages.
• The document supplies no performance evidence or explicit stop-loss and profit-target rules.
• Pivot confirmation delays the signal until bars on both sides of the turning point are available.

Tags

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