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The Pivot Reversal strategy is a structural price-action tool. It looks for “swing highs” and “swing lows” defined by a specific number of bars on either side of a peak or trough.
How Logic Works
A “Pivot” is confirmed when a bar has a higher High (for a peak) or lower Low (for a trough) than the bars immediately surrounding it.
- Long Entry: Triggered when the price breaks above the most recent Pivot High.
- Short Entry: Triggered when the price breaks below the most recent Pivot Low.
- The Goal: To trade the breakout of a “structural” turning point in the market.
Key Customizable Inputs
- LeftStrength / RightStrength: These determine how many bars must be lower/higher on the left and right of the pivot bar for it to be considered “valid.”
Strategic Considerations
- Support/Resistance: This strategy treats pivots as the “true” floor and ceiling of the market.
Delayed Confirmation: Because you must wait for the “Right Strength” bars to complete to confirm the pivot, this strategy enters later than a single-bar reversal, but with much higher structural confidence.
