Indicator Builder Tutorial: Pivot Support Breakthrough
This example shows how to create an indicator to buy on dips when the price breaks below the long term pivot supports.
Select the Indicators tab from the menu at the top right of the page.
Now click the Indicator Builder tab to open the builder tool.
From the builder, in the first row select the Pivot operator from the drop down list.
Open the settings page for the pivots by clicking the cogs icon. Then click the parameters tab. From here set the pivot period to monthly.
After making this change, click the save button. Clicking the preview button should show the monthly pivots on the selected chart. You can experiment with different pivot formula but for the purpose of this example, we’ll keep the settings on standard.
Next, click on the pivot row to make sure it’s selected. It should have a red border. Then click the plus sign on the tool bar to add a new row above the pivot operator.
Click on the new row and select Greater than from the drop down.
Click the drop down next to the pivot selector and choose S2. S2 is the lowest support line, and this value will be the output for this part of the indicator.
Next click the row below, and set that to Median price. The Greater than operator will be true whenever the median price of the current bar is less than the lowest support from the pivot operator. This means a break through has happened.
Click on the preview button in the Greater than row to display the resulting chart. The chart should show lines where the operator is true. That is, where the condition holds that the median price is below the lowest pivot support level. In this chart, the output has been set to bars. This can be changed in the chart settings box.
Finally, click the plus symbol in the toolbar to add a new row. Set that to Buy. This will now create a buy signal whenever the output below is true.
Now you can click preview again to show the buy signals that the indicator creates on this chart and time frame.
To save the indicator, simply click the disk icon and then add a name and save. The pivot indicator is now complete.