Swing-Pivot Order Blocks with ATR or Percentage Stops
Summary
This strategy marks bullish and bearish price zones from confirmed swing pivots, then looks for a candle to close inside the latest zone with directional confirmation. A bullish entry requires a close within the zone associated with a swing low and a rising candle; a bearish entry uses the zone associated with a swing high and a falling candle. The pivot lookback controls how sensitive the zone updates are, and the script draws the resulting areas on the chart.
Risk is defined using either a multiple of average true range or a fixed percentage of the entry price. A take-profit order is placed at a configurable multiple of that stop distance, creating a fixed risk-to-reward target. The source shows the rules and settings but supplies no backtest results or evidence that the zones identify institutional activity. Pivot confirmation uses bars on both sides of a candidate pivot, so signals rely on delayed confirmation; the document also does not specify asset, timeframe, costs, or execution assumptions for evaluating the approach.
Key ideas
- Swing highs and lows define the most recent bearish and bullish price zones.
- Entries require price to close within the relevant zone and the candle direction to confirm the trade side.
- Stops can use ATR distance or a fixed percentage of entry price.
- Take-profit distance is set as a multiple of the stop distance.
- The document describes a rule set but provides no empirical performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.