Institutional Pivots

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Today I propose a novel idea of plotting pivots , this can be also considered as Value areas/Noise areas.

*What is it?

Its a simple concept of gauging price action with respect to its most time spent in a particular range, this is usually denoted as Value area in the Market profile concept, where that "most" word is represented by 70% of the price action.

*What's different from the Market Profile?

Market profile is dependent on real time price movement to complete to see the value area or noise area to plot a static area, there is always a possibility of it shifting as price may move outside of it, and hence its called "developing value area", till of course session is closed and plot is finalized.

While that method is solid indication of "actual price profile" development, it lacks when it comes to offering traders a more stable view to enable them to make decisions. And therefor, when traders trade MP they are usually limited by the number of trades they can take.

This is the main reason as to why traders prefer to use other methods like Pivots /ORB/Range-breakouts over pure MP charts, even though latter reduces the possibility of wrong estimations of "support/resistance working/holding".

*Why the name Institutional Pivots?

In my research I've found that these Pivots /Value area/Noise area ranges are often the areas watched by the big players who trade breakouts or mean reversion strategies, so while that name may sound dubiously clickbaity, it is indeed intended to represent an observation. I know how that sounds, but you can choose to ignore it if you do not agree or see good results after using it. After all, its free to use for everyone.

*Nomenclature/colors and settings?

  • Noise area/Value area/Central Pivot area - Designated with Yellow labels, in which NU represents the Upper level and ND represents the Lower level

  • Targets - Target calculation mechanism is based on "today's price action" and today's Open, D1 and D2 represent down targets for the day and U1 and U2 represent upper targets. Please note that this is independent of the "Noise area/Value area/Central Pivot area", so overlap of levels is possible. AND if overlap happens, that's an indication of more strength at S/R line/area for the price.

    One more thing to note here is that if there is formation of the new low or new high in the day, those levels will change as their calculation gets influenced by the same. This is NOT a repaint issue, this is SHIFT/FORMATION OF THE NEW levels and it's an "intended" behavior.

  • Open and POpen - Open represents open of the time-frame selected and POpen represents previous open of the time-frame.

  • Lable's starting with "H" are indicating higher Timeframe levels, levels which are same as above.

  • ATR based targets - When you enable this in settings, you will get target calculation based on ATR (self explanatory)

  • Full ATR mode - When you enable this option, you will get both Noise area as well as targets based on ATR, please don't forgot to turn off the ATR based targets when you enable this, as they conflict with each other.

I've not kept lines, area plots or even price levels as I feel it's just noise and takes away from the indicators main focus, please don't ask to add them, I'll not.

This is meant as purely educational idea, if you use this to trade, it is at your discretion and responsibility will be yours alone.

Past performance is not assurance of the future performance.

More example chart/s

Catatan Pelepasan: Updated to v5.

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