Pivot Points. High & Lows By Reversal Percentage

Library "Pivot Points. High & Lows By Reversal Percentage" by Jal9000

This Pine Script library provides a robust function for identifying and tracking pivot points (reversal points) in price data, suitable for integration into custom trading indicators and strategies.

🛠️ Main Features:

- ✅ Identifies pivot highs and lows based on configurable price movement thresholds.
- ✅ Lightweight. No candle backtracing used. Much less computation heavy.
- ✅ Supports multiple calls (with different values) within a single script.
- ✅ Compatible with request.security for multi-timeframe analysis.
- ✅ Returns both confirmed and temporary pivots for flexible integration.
- ✅ Pinescript V5 and V6 compliant code.

Purpose:

The pivots library enables Pine Script developers to easily add pivot point detection to their scripts. It identifies significant price reversals by evaluating price movements against a minimum range threshold (min_range_pct) and confirming reversals based on a percentage (reversal_pct) of the prior trend’s magnitude. The library supports multiple simultaneous calls with different settings, making it ideal for multi-timeframe strategies.

How It Works:

The library’s f_calculatePivot function tracks price movements to detect pivot points:

• Minimum Range Threshold: A potential pivot is considered if the price moves beyond the min_range_pct percentage of the current high (for a high pivot) or low (for a low pivot), ensuring sufficient movement.
  
• Reversal Confirmation: A pivot is confirmed if the price reverses from the potential pivot by at least the reversal_pct percentage of the distance between the last confirmed pivot and the current potential pivot, measuring the retracement relative to the prior trend’s magnitude.
  
• The function alternates between tracking highs (in an uptrend) and lows (in a downtrend), updating the trend when a pivot is confirmed.
  
• State management uses an array of pivot_state objects, allowing independent calculations for different timeframes and min_range_pct values within the same script.
  

## Technical Reference

Functions:

f_calculatePivot(series float _high, series float _low, float _min_range_pct, float _reversal_pct) → [bool, pivot, pivot]

- Parameters:

• _high: The high price series (e.g., high or math.max(open, close)).
  
• _low: The low price series (e.g., low or math.min(open, close)).
  
• _min_range_pct: The minimum percentage price movement to consider a potential pivot.
  
• _reversal_pct: The percentage of the prior trend’s distance required to confirm a pivot.
  

- Returns:
A tuple containing:

• isNewPivot: Boolean indicating if a new pivot was confirmed.
  
• last_confirmed_pivot: The most recent confirmed pivot (type pivot).
  
• temp_pivot: The current temporary pivot (type pivot).
  

Pivot type:

• idx (series int): Bar index of the pivot.
  
• typ (series int): Type of pivot (PIVOT_HIGH or PIVOT_LOW).
  
• prc (series float): Price of the pivot.
  
• tme (series int): Timestamp of the pivot.
  

Constants (internal):

• TREND_LONG, TREND_SHORT: Trend direction indicators (1, -1).
  
• PIVOT_HIGH, PIVOT_LOW: Pivot type indicators (1, -1).
  

✨ Example of Use:

//@version=5 
indicator("Pivot Example", overlay=true) 
import jal9000/pivots/1 as pivots

// Inputs
min_range_pct = input.float(20.0, 'Min Range %')
reversal_pct = input.float(30.0, 'Reversal %')
ignore_wick = input.bool(true, 'Ignore wick')

h = ignore_wick ? math.max(open, close) : high
l = ignore_wick ? math.min(open, close) : low

// Call the function with high, low, and input parameters
[is_new_pivot, new_confirmed_pivot, temp_pivot] = pivots.f_calculatePivot(h, l, min_range_pct, reversal_pct)

// Variable to store previous confirmed pivot outside the function
var pivots.pivot prev_confirmed_pivot = na

// Draw the line if a new pivot is confirmed and previous pivot exists
if is_new_pivot
    if not na(prev_confirmed_pivot) and not na(new_confirmed_pivot)
        line.new(x1 = prev_confirmed_pivot.idx, y1 = prev_confirmed_pivot.prc, x2 = new_confirmed_pivot.idx, y2 = new_confirmed_pivot.prc, color = color.blue, width = 1)
    prev_confirmed_pivot := new_confirmed_pivot

## Release Notes
v1

- Initial release of the pivots library with f_calculatePivot function for detecting pivot points and supporting multiple configurations and timeframes.

v2
- Code is Pinescript V6 ready. Remains identified as V5, but changing the version number is the only thing that is required to be v6.