Pivot-Level Breakout and Mean-Reversion Strategy Framework

Summary

This strategy builds session pivot levels using a selectable formula: Traditional, Fibonacci, Woodie, Classic, or Camarilla. It can trade either a breakout model, entering when price closes across a chosen pivot level, or a mean-reversion model, entering when price reaches a support or resistance level from the opposite side. Entry levels range from the central pivot to the third support or resistance tier.

Stops and profit targets can be assigned to pivot levels, with checks that place them on the appropriate side of the average entry price. A configurable trade limit constrains entries within each reset period, and a reset closes open positions and clears the counter. The accompanying description presents the script as a way to study price reactions and compare pivot configurations, not as a complete standalone strategy; it notes that additional triggers and confluence filters are absent. No backtest results are supplied, and practical performance will depend on market, timeframe, costs, and execution assumptions.

Key ideas

• The script supports five pivot calculation methods and plots a central level with three support and resistance tiers.
• Breakout entries trigger on a close across the selected level, while mean-reversion entries trigger on a touch from the opposite side.
• Pivot levels can define stop losses and profit targets, subject to checks against average entry price.
• A reset closes open positions and restarts the per-period trade counter.
• The framework lacks additional confirmation filters and provides no performance evidence.

Tags

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