Pivot-of-Pivot Reversal Entries Using Significant Swing Levels

Summary

This reversal strategy first identifies significant swing highs and lows. A candidate pivot is judged against surrounding bars with a tolerance scaled by the average true range, making the significance test responsive to volatility. The script then tracks successive confirmed pivot highs and lows. A pivot high becomes a higher-level resistance reference when the middle of three successive pivot highs stands above the two neighboring pivots; the low-side rule selects a middle pivot below its neighbors.

While a significant swing remains unbroken, the strategy places stop entries just beyond the corresponding pivot-of-pivot level, using the instrument’s minimum tick as the offset. The source exposes left- and right-bar counts and ATR settings, and notes later fixes to entry handling and pivot ordering. It provides code and a conceptual explanation but no performance statistics, asset-specific guidance, or risk exits. Because pivots require bars on both sides for confirmation, signals are inherently delayed; the document does not assess the practical effects of that delay, execution costs, or parameter sensitivity.

Key ideas

• Significant pivots are screened against surrounding highs or lows using an ATR-scaled tolerance.
• The strategy selects a pivot high or low from a sequence of three same-side pivots.
• A long stop entry is placed above the selected resistance level, and a short stop below support.
• Left and right confirmation lengths and ATR parameters are configurable.
• The document gives no backtest evidence or exit and risk-management rules.

Tags

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