Free AI web copilot to create summaries, insights and extended knowledge, download it at here
2497
Abstract
rice levels where the market may reverse its direction, encounter buying or selling pressure, or experience increased volatility.</p><h1 id="8210">Kās Pivot Points</h1><p id="5753">Kās Pivot Points try to enhance the classic pivot points by incorporating multiple elements and by applying a re-integration strategy to validate two events:</p><ul><li><b>Found_Support:</b> This event represents a basing market that is bound to recover or at least shape a bounce.</li><li><b>Found_Resistance:</b> This event represents a toppish market that is bound to consolidate or at least shape a pause.</li></ul><p id="a239">Kās Pivot Points are calculated following these steps:</p><ol><li>Calculate the highest of highs for the previous 24 periods (preferably hours).</li><li>Calculate the lowest of lows for the previous 24 periods (preferably hours).</li><li>Calculate a 24-period (preferably hours) moving average of the close price.</li><li>Calculate Kās Pivot Point as the average between the three previous step.</li><li>To find the support, use this formula: Support = (Lowest Kās pivot point of the last 12 periods * 2) -Step 1.</li><li>To find the resistance, use this formula: Resistance = (Highest Kās pivot point of the last 12 periods * 2) - Step 2.</li></ol><p id="b56b">The re-integration strategy to find support and resistance areas is as follows:</p><ul><li><i>A support has been found if the market breaks the support and shapes a close above it afterwards.</i></li><li><i>A resistance has been found if the market surpasses the resistance and shapes a close below it afterwards.</i></li></ul><p id="55d6">The lookback period (whether 24 and 12) can be modified but the default versions work well.</p><p id="e10c">The following chart shows an example of Kās Pivot Points:</p><figure id="2c1c"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*rbur1CyYmHkkw1Gbkb7cxw.png"><figcaption><b>Signal chart</b></figcaption></figure><p id="37d7">The green line refers to the dynamic support and the red line refers to the dynamic resistance. Green arrows show where a buy signal is detected and red arrows show where a sell signal is detected.</p><figure id="19dc"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*NZzdjlVfK48DnwYn2QWl7g.png"><figcaption><b>Signal chart</b></figcaption></figure><p id="5a29">The code in Pine Script is as follows (also found on my profile there):</p><div id="493b"><pre><span class="hljs-comment">// This source code is subject to t
Options
he terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/</span>
<span class="hljs-comment">// Ā© Sofien-Kaabar</span>
<span class="hljs-comment">//@version=5</span>
indicator(<span class="hljs-string">"Smoothed Pivot Points"</span>, overlay = <span class="hljs-literal">true</span>)
lookback_piv = input(defval = <span class="hljs-number">24</span>, title = <span class="hljs-string">'Pivot Lookback'</span>)
<span class="hljs-comment">// Pivot points</span>
<span class="hljs-comment">// Adjusted highs</span>
adjusted_high = ta.highest(high, lookback_piv)
<span class="hljs-comment">// Adjusted lows</span>
adjusted_low = ta.lowest(low, lookback_piv)
<span class="hljs-comment">// Adjusted close</span>
adjusted_close = ta.sma(<span class="hljs-built_in">close</span>, lookback_piv)
<span class="hljs-comment">// Pivot point</span>
pivot_point = (adjusted_high + adjusted_low + adjusted_close) / <span class="hljs-number">3</span>
first_support = (ta.lowest(pivot_point, <span class="hljs-number">12</span>) * <span class="hljs-number">2</span>) - adjusted_high
first_resistance = (ta.highest(pivot_point, <span class="hljs-number">12</span>) * <span class="hljs-number">2</span>) - adjusted_low
found_support = <span class="hljs-built_in">close</span> > first_support and <span class="hljs-built_in">close</span>[<span class="hljs-number">1</span>] < first_support[<span class="hljs-number">1</span>]
found_resistance = <span class="hljs-built_in">close</span> < first_resistance and <span class="hljs-built_in">close</span>[<span class="hljs-number">1</span>] > first_resistance[<span class="hljs-number">1</span>]
plot(first_support, color = color.green)
plot(first_resistance, color = color.red)
plotshape(found_support, style = shape.triangleup, color = color.green, location = location.belowbar, size = size.small)
plotshape(found_resistance, style = shape.triangledown, color = color.red, location = location.abovebar, size = size.small)</pre></div><figure id="efe7"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*oF49a7tglFciYSidjgbTSA.png"><figcaption><b>Signal chart</b></figcaption></figure><p id="e060">Itās worth noting that this technique only finds interesting reactionary zones but guarantees nothing. It may be interesting to combine it with other technical indicators and methods.</p><p id="b9be">The best time frame is hourly with a preference to avoid daily and weekly time horizons.</p></article></body>
