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.

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Choose the pivot operator

From the builder, in the first row select the Pivot operator from the drop down list.

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Set the pivot parameters

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.

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Monthly pivot lines

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.

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Select the pivot output

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.

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Preview the chart

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.

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Add a buy operator

Now you can click preview again to show the buy signals that the indicator creates on this chart and time frame.

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Preview the end result

To save the indicator, simply click the disk icon and then add a name and save. The pivot indicator is now complete.

Use this Indicator

Risk Disclosure: Information given on this website is for general purposes only and should not be construed as investment advice. Certain instruments shown here are complex and may come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. Market data displayed is indicative and is not a solicitation to buy or sell.