This indicator draws swing-highs and swing-lows, also called pivot highs and lows.
A swing high is a bar which has a higher-high than its surrounding bars (to the left and the right).
A swing low is a bar which has a lower-low than its surrounding bars (to the left and the right).
A common example of a pivot is Bill Williams' Fractal, which specifies that the centre bar must have a higher high than 2 bars to its left, and 2 bars to its right for a swing high, taking into account 5 bars at a time. Similarly, for a swing low, the centre bar must have a lower low than the 2 bars to its left and right.
This indicator allows configurable adjacent bars as input. Entering 2, means it essentially picks out a Williams Fractal. But you can select 1 (say for higher timeframes), using one 1 bar to the left and right of the centre bar.
The indicator will draw Swing/Pivot High/Low as circles at the same price level as the centre bar, till the next one shows up. Drawing is offset so it starts at the centre bar (the swing bar), showing exactly where the pivot bar is.
There are 2 main uses of pivot points, in various strategies:
Market Structure: to objectively define higher-highs/lows and lower-highs/lows in Trend Analysis.
More generally, to then determine if a trend might reverse, or continue as pivot levels are broken.
Messy pivot structures easily point out ranging markets.
There are a few of these, some closed source, which I don't like, since I think people should generally know what they are trading with, and I want to make sure I understand the logic exactly.
Nota Keluaran
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Label relative swing points as per Dow Theory, useful user request:
You almost did it but labeling need to be changed. You can also check this , this one is really great indicator on market structure but unfortunately its protected .tradingview.com/v/sZrwXphZ/
You just need change labeling and adding another minor zigzag Thanks
ka66
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@Indyan, thanks for clearly providing what you are expecting to see. I understand. Haven't had capacity to update yet.
Indyan
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can u make bos choch (minor majar) base on this swing points
ka66
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@Indyan, I'm not familiar with those concepts. Could you provide me good links that explain them? I'm guessing you mean break-of-structure, change-of-character. I have heard of the them in the past, just never formally used them to trade, beyond very basic trend analysis.
@Indyan, that's a nice indicator, and explanation of BoS/ChoCh. Thanks.
Indyan
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@ka66, You can google, trading hub or photon to know about true market structure, leave idm and just focus on what u made. when HL is broken then that price which broke the HL need to be broken for confirming LL without making a new HH
ka66
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@Indyan, what is IDM? Many thanks for those search terms. I can't guarantee I'll improve this further though with BoS and ChoCh like that nice LuxAlgo one. But I will look at the MTF stuf, that actually sounds quite powerful, to get an immediate S/R level from a higher TF.
ka66
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I see, just found references to IDM. I'm not all that familiar with the SMC/ICT stuff.
Indyan
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@ka66, IDM is inducement, when price break last HL , it is marked as IDM. and now we wait for price to break IDM for confirmation of trend . it become bearish now. and ur market structure is marking the same. can u label this indicator with HH HL LH LL? Thanks
You almost did it but labeling need to be changed. You can also check this , this one is really great indicator on market structure but unfortunately its protected .tradingview.com/v/sZrwXphZ/
You just need change labeling and adding another minor zigzag
Thanks