Pivot Point SuperTrend with Moving Average Trend Confirmation
Summary
This strategy builds a trailing trend indicator from confirmed pivot highs and lows. Each newly detected pivot updates a weighted center line, and ATR-based bands around that center determine a bullish or bearish state as price crosses the trailing levels. The script also plots pivot-derived support and resistance levels and can mark changes in the pivot-based trend.
A second SuperTrend calculation and a simple moving average provide additional trend context. The strategy enters long or short on trend changes, with moving-average conditions applied to the second SuperTrend signals; pivot-based signals are also combined with a date-window condition. Short signals close an existing long before entering short. The accompanying description argues that the extra filter may reduce false signals and whipsaws, but supplies no measured results or backtest evidence. Pivot points require later bars for confirmation, so plotted historical pivot locations should not be mistaken for information available at the pivot bar in real time.
Key ideas
- Confirmed pivot highs and lows update a weighted center line for the pivot-based trend bands.
- ATR-scaled bands define a trailing level used to detect bullish and bearish state changes.
- A second SuperTrend and a moving average add trend confirmation to entry rules.
- Pivot levels also provide plotted support and resistance references.
- The document claims potential filtering benefits but gives no performance evidence; pivot confirmation is delayed.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.