Pivot Point - MetaTrader 5 Script - MQL5 #21184 | Trading Script Download - MT4/MT5 Resources

Jamie Saettele described the key points in the March 2009 SFO Magazine article "Trade Forex like Jesse Livermore trades stocks."

Livermore's strategy was based on what he called "pivotal points." Today, most traders are aware of pivot points, and many traders use some form of pivot points (there are too many to count) to identify support and resistance, which aids in entering and exiting trades. Livermore was the first trader to mention the concept of pivots. If he wasn't the first, he was certainly the first.

Livermore defined key points as days with higher volume. A significant increase in volume after a long period of volatility is a key signal to him that the market is at the end of its major move. Rather than closing his position immediately, he waits for the market to turn over and confirm that what he sees is what he calls a reversal pivot point. At the end of a trend, a reversal key point may today be called a top breakout or panic bottom.

However, not all pivots lead to reversals. Heavy volume often occurs not only at the end of major moves, but also in the middle of a trend. Take a look at a stock chart and see for yourself. For example, a sustained pivot point may occur if a large amount of volume occurs and the underlying market does not flip immediately (or rebound immediately). When successive pivot points emerged, Livermore increased and even initiated his position.

Since the calculation depends on ATR (average true range), the parameters are simple:

Attachment download

📎 pivotal_points.mq5 (4.53 KB)

Source: MQL5 #21184