Pivot Strategy

To be used alongside the Scalping Strategy

Pivot Indicator
The TradingView Pivot Indicator Pinescript, can be found here:

https://docs.google.com/document/d/1A-8vrSeQ9v-Quc09hdeynvp8T2ZxKtfCu6A
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Setting Up Pivots
1. Open Pine Editor
2. Paste Code
3. Save Code
4. Apply Code to chart
5. Create Custom Time Frame on TradingView (720 Minutes / 12 Hour)
6. Go to Settings of Indicator
7. Check / Tick “Show Half Lines”
8. Select Time Frame and select 12 hours
Pivots, Pivots, Pivots and more Pivots...
Pivots, Pivots, Pivots and more Pivots...
Pivot Levels and Strategy
If you have set-up the indicator as explained above using the 12 hour chart, you can bring up a chart of say RTY for
illustration purposes. Let’s go with the 15-minute chart.

MR = Major Resistance

MS = Major Support

NEUTRAL REGIME = Between MS1 and MR1 it is considered to be a Neutral Mean Reversion Zone. This should
reflect the Overnight High and Low when using 12 hour pivots.

We want to be able to establish if the market is in a Neutral state or some trending state.

With this strategy, the market usually follows a step-by-step process:

Bearish

Neutral -> Bearish Breakout -> Confirmed Bearish Breakout -> Extended Bearish Breakout -> New Neutral

Bullish

Neutral -> Bullish Breakout -> Confirmed Bullish Breakout -> Extended Bullish Breakout -> New Neutral
Bearish Setup
Let’s get right into the setup and how they will guide our decision making. Once you break out of the
Neutral Zone, you will want to get confirmation that a trend is in progress where multiple tests must pass.
Each Test could be an area to add to your trade:

1. Test 1: Close below MS1 - ½ signals a bearish breakout. Sell-Stop below Low until filled**
2. Test 2: Hold time-filter below MS2 (T / 2) the bar. In the case of trading from a 15-minute chart, T =
15 minutes / 2 = 7.5 minutes. There may be a reason to use 1-minute charts when checking if
time-filter holds. Sell-Stop below Low until filled. This confirms the bearish breakout.
3. Test 3: Close below MS3 - ½ extends the bearish trend. Sell-Stop below Low until filled.
4. Test 4: Hold time-filter below MS4 (T / 2) the bar.Confirms trend extension. Sell-Stop below low
until filled.

**If price hits the pivot, then the trade-setup resets.

Once price extends the trend, you get into a New Neutral Zone.
Bullish Setup
Let’s get right into the setup and how they will guide our decision making. Once you break out of the
Neutral Zone, you will want to get confirmation that a trend is in progress where multiple tests must pass.
Each Test could be an area to add to your trade:

1. Test 1: Close above MR1 + ½ signals a bullish breakout. Buy-Stop above High until filled*
2. Test 2: Hold time-filter above MR2 (T / 2) the bar. In the case of trading from a 15-minute chart, T =
15 minutes / 2 = 7.5 minutes. There may be a reason to use 1-minute charts when checking if
time-filter holds. confirms the bullish breakout. Buy-Stop above High until filled.
3. Test 3: Close below MR3 - ½ Signals Bullish Trend Extension. Buy-Stop above High until filled.
4. Test 4: Hold time-filter above MR4 (T / 2) the bar. Confirms Bullish trend extension. Buy-Stop
above High until filled.

**If price reverts to the Pivot, then the setup is reset.

Once price extends the trend, you get into a New Neutral Zone.
If a Test Fails.
If a Test fails then you may take the trade back up to the Pivot.
Pivot + Scalping
Watch for confluence of the Pivot Levels with the Scalping Strategy rules.

At given pivot levels wait for FBOR / FVBO setups.

Examples of Pivot + Scalping
Examples of Pivot + Scalping
Examples of Pivot + Scalping
Examples of Pivot + Scalping