Candle Pivot and Stop Loss

20 paź 2023

The script plot upside and down side stop loss using pivot point and trure range.

The True Range, representing market volatility, is determined by finding the maximum value among the differences between the previous high-low, high-close, and low-close. The Downside Stop Loss is calculated by adding the True Range to the Pivot Point, while the Upside Stop Loss is calculated by subtracting the True Range from the Pivot Point.

These levels are plotted on the chart in blue (Pivot Point), red (Downside Stop Loss), and green (Upside Stop Loss), providing traders with essential reference points for their trading strategies.

The provided Pine Script calculates key trading levels for the current candle, including the Pivot Point, Downside Stop Loss, and Upside Stop Loss. The Pivot Point is computed as the average of the previous candle's high, low, and close prices.

22 lip

Informacje o Wersji

This Pine Script™ code defines an indicator for the TradingView platform that calculates and plots pivot points based on the high, low, and close prices of given number of candles. Additionally, it includes Simple Moving Averages (SMAs) and color-coded visual cues to assist with option trading decisions.

Here's a breakdown of the script:

1. **User Inputs**:
- `pivotCandles`: Number of candles used for pivot calculation (default is 5).
- `smaPeriod`: Period for the Simple Moving Average (SMA), default is 21.

2. **Pivot Calculation**:
- Calculates the highest high (`high_pivot`), lowest low (`low_pivot`), and the close price of the last `pivotCandles` candles.
- Computes the pivot point using these values.

3. **Condition for Background Color**:
- Determines whether the pivot point of candles is above or below the SMA
- Changes background color to green if above condition, red if below condition.

8. **Swing High/Low Plotting**:
- Initializes variables for swing high and low lines.
- Sets these values based on the above condition every `pivotCandles` bars.
- Plots the swing high and low lines with different colors and styles.

9. **Additional SMA Calculations and Plotting**:
- Calculates SMAs for periods of 9, 21, 50, and 200.
- Plots these SMAs with different colors for visual distinction.

### Usage
- **Pivot Points**: Useful for identifying potential support and resistance levels based on recent price action.
- **SMA**: Helps identify the trend direction. Crossovers between different SMAs can signal potential trading opportunities.
- **Background Color**: Provides a visual cue to quickly assess market conditions relative to the pivot point and SMA.
- **Swing High/Low Lines**: Highlights potential reversal points, aiding in decision-making for entering or exiting trades.

This script combines these elements to create a comprehensive tool for traders to analyze price movements and make informed trading decisions.