Arithmetic Candles with Pivot Trend Signals

📘 Script Description
🕯️ Arithmetic Candles

Instead of using traditional candlesticks, this script calculates:

Arithmetic Open = Average of open and close

Arithmetic Close = Average of high and low

This candle provides a smoother, more averaged-out representation of price action.

Benefit: Filters out noise and reveals a more "true" price midpoint per candle.

🧭 Pivot Point Levels (Classic)

Classic pivot levels are calculated using the previous day's values:

Pivot (P) = (High + Low + Close) / 3

R1 / S1: First resistance/support levels

R2 / S2: Extended resistance/support levels

These lines mark key price levels that often act as support or resistance.

📈 Trend Signals

The script generates trend signals when a selected price source crosses above or below the pivot:

Bullish Signal (green arrow): When price crosses above the pivot

Bearish Signal (red arrow): When price crosses below the pivot

You can choose the signal source:

Either the regular close price

Or the Arithmetic Candle midpoint: (arithOpen + arithClose) / 2

🎨 Visual Representation

Candles are colored green when arithClose > arithOpen, otherwise red

Pivot lines are drawn if enabled

Triangles mark trend change signals (bullish or bearish)

✅ Use Case

In sideways markets, Arithmetic Candles help filter out noise

Pivot Levels provide clear price zones for potential breakouts or reversals