Pivot Point Profile [LuxAlgo]

4 Jul

The Pivot Point Profile indicator groups and displays data accumulated from previous pivot points, providing a comprehensive method for prioritizing and displaying areas of interest directly given by swing highs and lows.

Users have access to common settings present in other profile-type indicators.

🔶 USAGE



The Pivot Point Profile is particularly helpful in identifying highly active reversal zones that have been visited multiple times by price. Because of this, we could generally expect these areas to serve as future points of interest, often acting as support or resistance when re-visited.

The profile displays data associated with both Pivot Highs and Pivot Lows. Each row consists of pivot high and pivot low counts side-by-side, forming the total width of the row.

• By analyzing the row as a whole, we can gain a better understanding of WHERE to look for interactions.
  
• By analyzing the pivot counts independently, we can gain a better understanding of WHAT to expect when returning to these areas.
  

For example:

If a row in the profile contains entirely Pivot Lows, this could be seen as an indication to look for buyers to hold that level for a continuation upwards. A break of this level could be interpreted as a lack of interest from previous buyers at this level, indicating a further move down.



🔹 Concentrated Areas



Each row in the profile displays the current count of high pivots and low pivots within the selected lookback. The largest count for each pivot direction is identified as a "Concentrated Area (CA)", these CAs are highlighted over the chart with a line displaying the average of all pivots within that CA. The CA Average is the average of all pivot points (in the majority direction) within the given row.

These can hold more importance as potential support/resistance areas.

Note: The CA Threshold can be manually adjusted to highlight all rows based on a user-selected value.

🔶 DETAILS

🔹Calculation

The idea behind the Pivot Point Profile is a new analysis method for pivot points, taking the idea of a volume profile and adapting it to display pivot points instead of volume. By using this data, in theory, we should be able to better prioritize zones to anticipate reversals, as well as identify key levels to watch for buyer & seller interactions to use as confirmations in direction.

The (vertical) width of each row is the product of the script's "Row Size", this is the number of rows that the profile will consist of. With a max of 250, the profile can be decently granular. That being said, A more granular profile will have fewer overlapping pivot points. By decreasing the row size (Using fewer rows in the profile) you will increase the tolerance for grouping pivot points. Potentially leading to a more comprehensive Profile. Inversely, By reducing the tolerance for grouping, you will better visualize only similar highs and lows but may have noisier data to sift through.

The Profile is calculated based on a "Lookback" parameter, using only the lookback amount of previous high and low pivots to calculate the profile. Configuring this parameter alongside "Pivot Length", will allow for great control over the frame of reference of the profile.

Note: This indicator is capable of utilizing the full chart history of pivot points, this can be done by enabling the "Use Full Chart History" setting, this will cause the script will calculate from everything it has access to on your current chart.



🔹 Display



The Pivot Point Profile display can be customized to fit a various range of chart styles and visual needs. The specific settings to adjust these can be located in the "Profile Display" Section of the User Inputs.

• Profile Width: Sets the Left to Right Width of the Profile. This is the maximum width that the profile will occupy and will scale to fit within this width.
  
• Profile Offset: Sets the distance of the Profile's Axis from the current chart candle. This moves the entire profile left and right to enable to user to set the distance between the profile and the current candle.
  
• Direction: Changes the display direction of the profile, allowing for "Left", "Right", or "Center" display styles.
  

🔶 SETTINGS

🔹 Pivot Point Parameters

• Pivot Type: Choose between "Fractal Pivots" or "SMC Structure" to use as the basis for pivots.
  
• Length: Sets the length for the pivot calculations.
  

🔹 Profile Calculations Parameters

• Lookback: Sets the number of pivots to calculate within, in increments of high and low pairs. (Setting this to 1 = 1 Pivot High & 1 Pivot Low)
  
• Use Full Chart History: Disregards the set lookback and instead uses all available chart data to calculate from.
  
• Row Size: Sets the total number of rows to calculate the profile with.
  

🔹 Profile Display

• Profile Width: Sets the max left & right width (in bars) that the profile will occupy.
  
• Profile Offset: Sets the distance of the profile axis from the last chart bar.
  
• Direction: Sets the display direction
  

🔹 Concentrated Areas

• Highlight CAs: Extends the rows left from concentrated areas.
  
• CA Threshold: Manually set the threshold for determining concentrated areas, when disabled, only the largest rows will be displayed.
  
• CA Averages: Toggles the concentrated area averages for each pivot direction.
  
• Note: CA Averages can be displayed independently without CA Highlights being displayed, and vice versa.