Protected Pivot Levels for Breaks and Market Structure Shifts

Summary

This indicator identifies candidate swing highs and lows, then marks levels as protected after price action confirms them. It uses recent high and low prices to detect pivots and an Average True Range based distance to adjust confirmation sensitivity. Confirmed levels are drawn as support or resistance, while breaks can be labeled as a Break of Structure or Market Structure Shift according to the prior directional state. The indicator also plots protected highs and lows and a trailing line that changes with detected structural direction.

Users can adjust the pivot analysis period, ATR period, ATR coefficient, label selection, and display of protected levels. The document supplies implementation code and describes parameter effects, but gives no backtest or evidence that the signals predict profitable trades. Pivot confirmation and structure labels are chart-analysis aids whose behavior depends on settings and timeframe; the text does not specify a trading entry, exit, or risk rule.

Key ideas

• The indicator detects swing pivots and promotes them to protected levels after price confirms them.
• ATR-scaled distance and the analysis period control confirmation sensitivity.
• A break of a protected pivot is labeled according to whether it continues or shifts the prior market structure.
• The document describes configurable chart outputs but provides no performance testing or complete trading rules.

Tags

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