Pivot Reversal Entries Using Stop Orders Beyond Swing Highs and Lows

Summary

This strategy uses confirmed pivot highs and lows to set potential reversal entry levels. When a pivot high appears, it retains that price and places a long stop order one minimum price increment above it. A pivot low similarly establishes a short stop one increment below. The strategy keeps the corresponding entry condition active until price crosses the stored pivot level in the direction that invalidates it or a new pivot updates the reference.

The description recommends viewing signals alongside Hull moving averages with periods of 9 and 18, treating their intersections as an additional buy or sell cue. The document supplies code but no trade statistics, benchmark, or risk controls, so it provides no evidence that the setup is profitable. Pivot identification uses bars to the right of the turning point, meaning confirmation occurs after that point; execution and signal timing should be considered when evaluating results.

Key ideas

• A pivot high becomes a reference for a long stop entry just above the swing price.
• A pivot low becomes a reference for a short stop entry just below the swing price.
• The stored entry condition is cleared when price moves through its pivot in the invalidating direction or a new pivot is found.
• The author suggests pairing the setup with Hull moving averages of 9 and 18 periods, but gives no performance evidence.

Tags

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