Pivot Trend

Hello Traders, Another original idea is here with you. Actualy I can say that it's a breakout strategy that uses multiple Pivot Point's averages. How it works? - it finds the Pivot Points , you can set the length as…

Pine ScriptTrend following Breakout SMA Pivots / S&R

Author: ChaoZhang
Complexity: Starter · 61 lines
Parameters: 4
Backtest bar: 30m · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Hello Traders,

Another original idea is here with you. Actualy I can say that it's a breakout strategy that uses multiple Pivot Point's averages.

How it works?

it finds the Pivot Points , you can set the length as you want
it gets averages of Pivot Highs and Pivot Lows, you can set the number of Pivot Points to be included
it compares the current closing price with averages of Pivot Highs and Pivot Lows
if both are positive or negative then trend changes

You have two options:

Pivot Point Period => is the length that is used to find Pivot Points . means it checks left/right bars if it's Pivot Point (4 by default)
Number of PP to check => is the number of Pivot Points that the script finds and calculates the averages (3 by default)

backtest

Parameters

Name	Default	What it controls
v_input_1	4	Pivot Point Period
v_input_2	3	number of PP to check
v_input_3	blue	Colors
v_input_4	orange	coldn

Source Pine Script

/*backtest
start: 2022-04-30 00:00:00
end: 2022-05-29 23:59:00
period: 30m
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © LonesomeTheBlue

//@version=4
study("Pivot Trend", precision = 2, explicit_plot_zorder = true)
prd = input(defval = 4, title="Pivot Point Period", minval = 1, maxval = 30)
pnum = input(defval = 3, title="number of PP to check", minval = 1, maxval = 30)
colup = input(defval = color.blue, title = "Colors", inline = "col")
coldn = input(defval = color.orange, title = "", inline = "col")

float ph = pivothigh(prd, prd)
float pl = pivotlow(prd, prd)
var ph_lev = array.new_float(pnum, na)
var pl_lev = array.new_float(pnum, na)

if ph
    array.unshift(ph_lev, ph)
    array.pop(ph_lev)
    
if pl
    array.unshift(pl_lev, pl)
    array.pop(pl_lev)
            
float lrate = 0.0
for i = 0 to array.size(pl_lev) - 1
    float rate = (close - array.get(pl_lev, i)) / array.get(pl_lev, i)
    lrate += (rate / pnum)

            
float hrate = 0.0
for i = 1 to array.size(ph_lev) - 1
    float rate = (close - array.get(ph_lev, i)) / array.get(ph_lev, i)
    hrate += (rate / pnum)

hline(0.)
hln = plot(hrate, color = color.red, linewidth = 2)
lln = plot(lrate, color = color.lime, linewidth = 2)

trend = 0
trend := hrate > 0 and lrate > 0 ? 1 : hrate < 0 and lrate < 0 ? -1 : nz(trend[1])
tcolor = trend == 1 ? color.new(colup, 40) : color.new(coldn, 40)
fill(hln, lln, color = tcolor)

mid = sma((hrate + lrate) / 2, 9)
plot(mid, color = mid >= 0 ? mid >= mid[1] ? color.blue : color.navy : mid <= mid[1] ? color.red : color.orange, linewidth = 2)

alertcondition(change(trend) > 0, title='Pivot Trend UP', message='Pivot Trend UP')
alertcondition(change(trend) < 0, title='Pivot Trend DOWN', message='Pivot Trend DOWN')

if change(trend) > 0
    strategy.entry("Enter Long", strategy.long)
else if change(trend) < 0
    strategy.entry("Enter Short", strategy.short)

Published by ChaoZhang on the FMZ strategy square · last modified 2022-05-31. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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