X-Day Rolling Pivot

Rolling pivot is a trading method suggested by Mark B. Fisher in his book "The Logical Trader". The original version just monitors 3 latest days for pivot calculation, but in our version we allow you to decide the number of days: it can be 3, 5, 7, 10 days... The basic idea is taking into account the highest high, lowest low of the past X days, and the close to calculate the pivot plots.

Fisher’s rolling pivot low & high are displayed as S1 and R1 in our indicator. The area between S1 and R1 is where the market trades without a clear bias. Therefore, our indicator shades this area in yellow to signal traders of a choppy zone where you should not trade.

You should only trade when the market moves out of the choppy zone between S1 and R1. When the market breaches above R1, a bullish phase is established and long trades are favored. When the market breaches below S1, a bearish phase is established and short trades are favored.

In order to help you have targets for long/short trades, we added S2/R2, S3/R3, S4/R4 which are user-defined offsets from the PP line (those new S/R plots are our improvements compared to Fisher’s version).

Especially, we allow you to specify the minimum differential percentage to normalize pivot differential between days, which helps the S/R lines locate better: neither too expanding nor too collapsing.

• Allow configuring the number of days (X)
• Allow configuring minimum differential percentage
• Plot pivots of today’s session as well as all the past sessions
• Plot up to S4/R4 (optionally show/hide each pair)
• Allow modifying factors to compute S/R levels
• Colorize PP line to reflect if the market is bullish or bearish
• Shade the middle zone to highlight choppy price action
• Display how bullish/bearish the market is with an innovative ribbon
• Label each pivot lines (with an optional pivot name)
• Trigger alerts on middle zone breakout
• Print markers on middle zone breakout
• Be NinjaScript ready for advanced usage, only restricted by your imagination
• Expose dedicated NinjaScript signals