Pivot-Line Averages as Projected Support and Resistance
Summary
This indicator builds an average from lines connecting confirmed pivot highs or pivot lows. When a new pivot is detected, the script connects it to earlier pivots of the same type and extends those lines forward. At each bar, it averages the projected line prices to create a moving reference level. Users can display high pivots, low pivots, or both, and can adjust pivot confirmation bars, history limits, and line fills.
The method offers a way to summarize the trajectories implied by past turning points, potentially highlighting areas where price may encounter projected support or resistance. A pivot is only confirmed after the selected right-side bars have elapsed, so the plotted pivot location is historical even though confirmation arrives later. The document explains the construction and performance controls but provides no trading rules, backtest, or evidence of predictive value. It also notes that many lines can be involved in the average, while only a limited number may remain visible; heavier calculations may require reducing the lookback or selecting one pivot type.
Key ideas
- The indicator connects each new confirmed pivot to earlier pivots of the same type and extends those lines forward.
- It averages the projected line values at each bar to form a moving reference line.
- Users can separately analyze pivot highs, pivot lows, or both, with configurable pivot and history settings.
- Pivot confirmation is delayed by the right-side bar setting, and the document provides no evidence of profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.