PivotBox by Nadeem Al-Qahwi

PivotBox by Nadeem Al-Qahwi

General Idea of the Indicator: The PivotBox indicator is an advanced technical analysis tool designed to identify key reversal points in the market based on pivot highs and pivot lows. The indicator helps traders to detect breakout and breakdown opportunities based on past price movements, guiding informed trading decisions.

Indicator Functions:

Key Reversal Points (Pivot Points):

The indicator identifies pivot highs and pivot lows over a user-defined period, helping traders spot significant price levels in the market.

These points are plotted on the chart, showing where market reversals may occur.

Breakouts and Breakdowns:

The indicator identifies breakouts when the price moves above a pivot high or breakdowns when the price falls below a pivot low.

Once these breakouts or breakdowns are detected, the indicator draws lines indicating the critical price levels for visual reference.

Trend Levels using Zero-Lag MA:

The indicator includes an option to add a Zero-Lag Moving Average (Zero-Lag MA) to display the overall trend in the market. This moving average helps filter out noise and identify the general market direction, improving trade decision-making.

Line Styles:

The pivot points (highs and lows) are displayed using different line styles, such as solid, dashed, or dotted lines. The user can customize the style based on their preference.

These lines represent the breakouts or breakdown levels in the market.

Alerts:

The indicator can activate alerts when a breakout or breakdown occurs. Users can customize the alerts to notify them when specific conditions are met, ensuring that they do not miss significant price movements.

Input Variables:

Period (prd): The time period over which the pivot highs and lows are calculated. The user can define this period based on their trading strategy.

Max Breakout Length (bo_len): The maximum time duration for a breakout or breakdown to occur. This variable helps determine the relevance of the price movement.

Threshold Rate (cwidthu): The width percentage that helps to define the price area for breakouts and breakdowns.

Line Style (lstyle): Allows the user to choose the style of lines used to display the pivot points (solid, dashed, or dotted).

Minimum Number of Tests (mintest): The minimum number of tests required before a breakout or breakdown is considered valid.

How the Indicator Works:

The indicator first calculates the pivot highs and lows based on the user-defined period (Period).

It then tracks price movements to detect if a breakout or breakdown occurs.

When a breakout or breakdown is confirmed, the indicator draws lines at these levels and shows the user the new price direction.

Alerts can be triggered based on predefined conditions such as when a breakout or breakdown occurs.

The Zero-Lag MA helps the user visualize the trend, adding another layer of analysis to the market movements.

Key Benefits:

Accurate Reversal Point Analysis: Helps traders identify key entry and exit points based on precise technical analysis.

Breakout and Breakdown Detection: Allows traders to spot breakout and breakdown opportunities in real-time.

Customizable Alerts: Users can set up alerts to notify them when a breakout or breakdown happens, ensuring they don't miss important market moves.

Flexible Customization: The indicator offers various options to customize the display (line styles, alerts, trendlines), catering to different trading strategies.