Projecting Support and Resistance from Recent Swing Pivots

Summary

This indicator identifies swing highs and lows using configurable counts of bars before and after each candidate pivot. When a new pivot is confirmed, it connects that point with the previous pivot of the same type and extends the resulting slope forward as a resistance or support line. The number of neighboring bars used to define a pivot changes how frequently pivots appear and how sensitive the lines are to local price moves.

The projected lines are intended to help traders observe whether price reacts at support or resistance, or moves through it in a possible breakout. The document includes implementation details, but offers no measured results, trading rules, or evidence that pivot reactions predict future returns. Because confirmation depends on bars after a candidate high or low, a pivot is only known after those bars have formed; this affects when a signal can be acted upon. The tool is a charting aid, and its usefulness depends on the chosen pivot settings and independent evaluation.

Key ideas

• A pivot is defined by comparing a candidate high or low with a configurable number of surrounding bars.
• The indicator connects the two latest pivots of each type and extends each line forward.
• Changing the neighboring-bar settings changes pivot sensitivity and the resulting support and resistance levels.
• The lines can help visualize possible price reactions or breaks, but the document provides no predictive-performance evidence.

Tags

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