Pivot-Level Mean Reversion with Scaled Entries

Summary

This strategy places limit orders to buy near support levels and sell near resistance levels derived from a selected pivot-point formula. The pivot type can be changed among several established calculation methods, and the anchor timeframe is configurable. For the enabled levels, long orders are placed at the first three supports and short orders at the first three resistances. Each filled position targets the central pivot for its exit.

The script cancels pending orders if a bar’s high and low straddle the central pivot, then allows the setup again when a new pivot is calculated. It permits pyramiding, while the fourth and fifth support and resistance entries are present only as commented examples. The page describes the intended mechanics and shows plotted pivot levels, but gives no performance analysis or evidence of profitability. Results may depend on the pivot formula, timeframe, order fills, costs, and the strategy engine’s handling of simultaneous orders.

Key ideas

• The strategy uses pivot supports for limit entries in long positions and pivot resistances for short entries.
• Each enabled entry targets the central pivot as its exit level.
• The pivot calculation method and timeframe can be configured.
• Pending orders are canceled when price spans the central pivot within a bar, and the setup resets at a new pivot.
• The script provides no performance evidence, and live results depend on fill conditions and trading costs.

Tags

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