Pivot Point Supertrend Indicator

Trading in financial markets can be a challenging task, but technical indicators can help traders make better decisions. One such indicator is the Pivot Point SuperTrend. The Pivot Point SuperTrend is a powerful indicator that combines two popular trading tools, the Pivot Point and the SuperTrend, to identify potential trading opportunities.

The Pivot Point is a technical indicator used by traders to determine potential support and resistance levels. The Pivot Point is calculated by taking the average of the high, low, and closing prices of the previous trading day. The SuperTrend is a trend-following indicator that uses the Average True Range (ATR) and the moving average to identify the direction of the trend and potential entry and exit points.

The Pivot Point SuperTrend indicator combines these two tools by using the Pivot Point as the center line and the SuperTrend to identify the upper and lower bands. The center line is calculated using the Pivot Point, and the upper and lower bands are calculated using the ATR and a factor determined by the trader. When the price is above the upper band, the trend is considered bullish, and when the price is below the lower band, the trend is considered bearish.

The Pivot Point SuperTrend also includes support and resistance levels based on the Pivot Point. The support level is the lowest point reached during the previous day, while the resistance level is the highest point reached during the previous day.

To use the Pivot Point SuperTrend, traders can adjust the period of the Pivot Point, the ATR factor, and the ATR period to suit their trading style and preferences. Traders can also choose to display the Pivot Points, the buy and sell signals, the center line, and the support and resistance levels, depending on their needs.

The Pivot Point SuperTrend can be used on any time frame and any financial instrument, including stocks, futures, and forex. Traders can use this indicator to identify potential entry and exit points, as well as to determine the direction of the trend and the strength of the support and resistance levels.

In conclusion, the Pivot Point SuperTrend is a powerful indicator that combines the Pivot Point and the SuperTrend to provide traders with a comprehensive view of the market. Traders can use this indicator to identify potential trading opportunities and make better-informed

The entry and exit conditions for the Pivot Point SuperTrend indicator are as follows:

Entry:

Buy when the current bar closes above the SuperTrend line (Trailingsl) and the previous bar closed below the SuperTrend line.
Sell when the current bar closes below the SuperTrend line and the previous bar closed above the SuperTrend line.
Exit:

Exit long positions when the current bar closes below the SuperTrend line.
Exit short positions when the current bar closes above the SuperTrend line.
Additionally, the indicator also provides Pivot Points, Center Line, and Support/Resistance levels that can be used for additional analysis and decision making. The Pivot Points can be used as potential levels for taking profits or setting stop losses. The Center Line can be used as a trend indicator, and the Support/Resistance levels can be used as potential reversal zones or areas of interest for trading.

To convert the “Pivot Point SuperTrend” indicator into a strategy, you need to define the entry and exit rules based on the signals generated by the indicator.

One possible way to create a strategy using this indicator is to enter long when the current candle closes above the PP SuperTrend line and exit when the trend changes to negative. Conversely, you can enter short when the current candle closes below the PP SuperTrend line and exit when the trend changes to positive.

Here is an example of a strategy based on the Pivot Point SuperTrend indicator:
//@version=4
strategy(“Pivot Point SuperTrend Strategy”, overlay=true)

// Indicator Inputs
prd = input(defval=2, title=”Pivot Point Period”, minval=1, maxval=50)
Factor = input(defval=3, title=”ATR Factor”, minval=1, step=0.1)
Pd = input(defval=10, title=”ATR Period”, minval=1)
showpivot = input(defval=false, title=”Show Pivot Points”)
showlabel = input(defval=true, title=”Show Buy/Sell Labels”)
showcl = input(defval=false, title=”Show PP Center Line”)
showsr = input(defval=false, title=”Show Support/Resistance”)

// Indicator calculations
float ph = pivothigh(prd, prd)
float pl = pivotlow(prd, prd)

var float center = na
float lastpp = ph ? ph : pl ? pl : na
if lastpp
if na(center)
center := lastpp
else
center := (center * 2 + lastpp) / 3

Up = center – (Factor * atr(Pd))
Dn = center + (Factor * atr(Pd))

float TUp = na
float TDown = na
Trend = 0
TUp := close[1] > TUp[1] ? max(Up, TUp[1]) : Up
TDown := close[1] < TDown[1] ? min(Dn, TDown[1]) : Dn Trend := close > TDown[1] ? 1 : close < TUp[1] ? -1 : nz(Trend[1], 1) Trailingsl = Trend == 1 ? TUp : TDown bsignal = Trend == 1 and Trend[1] == -1 ssignal = Trend == -1 and Trend[1] == 1 // Strategy calculations longCondition = bsignal if (longCondition) strategy.entry("Buy", strategy.long) shortCondition = ssignal if (shortCondition) strategy.entry("Sell", strategy.short) // Plotting plot(showcl ? center : na, color=showcl ? center < hl2 ? color.blue : color.red : na) bsignalColor = bsignal ? color.lime : na ssignalColor = ssignal ? color.red : na plotshape(bsignal and showlabel ? Trailingsl : na, title="Buy", text="Buy", location=location.absolute, style=shape.labelup, size=size.tiny, color=bsignalColor, textcolor=color.black, transp=0) plotshape(ssignal and showlabel ? Trailingsl : na, title="Sell", text="Sell", location=location.absolute, style=shape.labeldown, size=size.tiny, color=ssignalColor, textcolor=color.white, transp=0) plot(showsr and pl ? pl : na, color=showsr ? color.lime : na, style=plot.style_circles, offset=-prd) plot(showsr and ph ? ph : na, color=showsr ? color.red : na, style=plot.style_circles, offset=-prd) // Alerts alertcondition(Trend == 1 and Trend[1] == -1, title="Buy Signal", message="Buy Signal") alertcondition(Trend == -1 and Trend[1] == 1, title="Sell Signal", message="Sell Signal") Pivot Point SuperTrend is a technical indicator used in trading that combines two popular indicators - Pivot Points and SuperTrend. The indicator is designed to help traders identify the trend and determine entry and exit points for trades. Pivot Points are a widely used indicator that is calculated based on the previous day's high, low, and closing prices. These levels act as potential support and resistance levels, which can help traders identify potential price reversal points. The SuperTrend indicator is based on the Average True Range (ATR) indicator, which measures market volatility. It uses the ATR value to calculate the upper and lower bands, which act as dynamic support and resistance levels. The SuperTrend indicator changes its color based on the trend, making it easy for traders to identify the direction of the trend. The Pivot Point SuperTrend combines these two indicators to create a more reliable trading signal. It uses the Pivot Points to calculate the center line, which is then used to calculate the upper and lower bands using the ATR value. The resulting trend is then displayed using the SuperTrend color changes. In the MT4 platform, the Pivot Point SuperTrend indicator can be easily added to a chart by navigating to the 'Insert' menu, selecting 'Indicators', and then selecting 'Custom'. The Pivot Point SuperTrend can be found in the list of available custom indicators, and can be added to the chart with a single click. Once added, traders can customize the indicator's settings to suit their individual trading preferences.