Projecting Pivot-Based Trendlines with ATR-Scaled Slopes

Summary

This indicator draws projected resistance and support trendlines from confirmed price pivots. It detects pivot highs and lows using a configurable lookback length and a confirmation span, with an option to anchor pivots to candle wicks or candle bodies. Once a pivot is confirmed, the script extends a dotted line forward from that point.

The line’s slope is derived from ATR and scaled by a user-selected percentage: lower settings reduce the ATR-based slope, while higher settings increase it. The indicator colors high and low lines differently by default, with an option for a single color. It offers a way to make projected trendline angles responsive to recent volatility, but the document supplies no trading rules or performance evidence. Since pivots require later bars for confirmation and the slope depends on selected parameters, the plotted lines are descriptive tools rather than validated forecasts.

Key ideas

• The indicator identifies pivot highs and lows and extends trendlines from their confirmed locations.
• Pivot detection can use candle wicks or candle bodies and is controlled by a lookback setting.
• ATR measured around pivot detection determines the projected line slope.
• A percentage input scales the ATR-based slope to make the lines shallower or steeper.
• The document describes a charting aid and provides no evidence that the projected lines predict future prices.

Tags

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