Projecting Support and Resistance from Three Swing Pivots

Summary

This indicator estimates sloping support and resistance by extending lines derived from the latest three swing highs and three swing lows. A pivot is identified using configurable numbers of bars before and after a candidate high or low, so the pivot definition can be made more or less selective. When a new pivot forms, the indicator updates its projections using pairs of recent pivots.

Users can display individual pivot-pair projections, averages of two or three projections, and midpoint lines between average support and resistance. A connected setting controls whether line segments remain joined as new pivots arrive. The document suggests using the levels to observe possible bounces or breaks, but offers no empirical results or rules for entering, exiting, or sizing trades. Pivot confirmation depends on bars after the candidate point, so the indicator’s levels can be recognized only after those bars have formed. Its description and code provide implementation detail, not evidence that the projections predict price movement.

Key ideas

• The indicator projects sloping support and resistance from recent swing highs and lows.
• The number of bars before and after a candidate extreme controls how pivots are defined.
• It offers individual pivot-pair lines, averages of projections, and midpoint levels.
• The levels can help visualize potential reactions or breaks, but no trade rules or performance data are given.
• Because pivots require bars after an extreme, confirmation occurs with delay.

Tags

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