Pivot Support and Resistance Breaks Filtered by Volume and Candle Wicks
Summary
This indicator tracks the latest confirmed swing high and swing low as stepped resistance and support levels. A pivot is confirmed using bars on both sides, so the displayed level appears only after the specified right-side confirmation period. Break signals occur when the close crosses an active level. A volume oscillator comparing fast and slow volume averages filters clean breaks, while candle-wick checks mark some penetrations as possible rejections.
The described uses include entering in the direction of a confirmed break, fading rejection wicks, or waiting for a retest of the broken level. The document explains configurable pivot windows and a volume threshold, but supplies no backtest, performance evidence, or risk-adjusted results. The pivot confirmation delay and subjective wick interpretation can affect timeliness and signal quality; the proposed applications are examples rather than validated rules.
Key ideas
- The indicator updates support and resistance to the most recently confirmed swing pivots.
- Pivot levels are delayed by the required bars to the right of the swing.
- A close crossing a level is treated as a clean break only when volume exceeds the chosen threshold and the candle is not classified as a rejection wick.
- Rejection wick labels warn that a level penetration may fail.
- Breakout entries, wick fades, and retest entries are suggested, without performance validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.