PivotPoints on SR lines - TradingView indicator (premium)

As an addition to automated trading (or a standalone, for manual trading, too), you might wanna need some reliable technical indicators. Like this one showing pivots, which bounced exactly off some previously created Support/Resistance level.

Analyzing price movements for a few years taught me one thing - markets always reverse bouncing off some horizontal Support/Resistance level. The only exception to this rule is when market pops new ATH (All Time High), which certainly happened in so-called "price discovery" run - this asset has never been in this space before, so no Support/Resistance could have been formed, while the rally had to stop at some point anyway.

In all other cases, analyzing past market movements, you will be able to find a place where the market reversed or gathered before. The difficulty is to understand (or guess?) from which S/R level market will reverse right now, because there are many of them. Even if this is probably not possible to make such guess correctly and always, it is good to know when potential reversal shown by whatever indicator you're using happened on SR line or in the middle of nowhere. That last case would turn out to be fake to your worst regrets. Ability to filter-out all those fake pivots is a value my indicator delivers.

Example? It is very often considered an entry signal when Stochastic %K and %D lines cross each other, especially in overbought/oversold area. It could work quite well in sideways markets, but when a trend begins, Stochastic would report CONSECUTIVE counter-trend signals, draining your trading balance to zero quickly. But this trend took place in price-discovery area (not necessarily when going for the new ATH ), so all those counter-trend signals happened not at S/R levels. Hence, they should be ignored.

Big triangles mark pivot point which happened on the S/R line. Small triangles - in the middle of nowhere.

How good is it? I compared it with one of my previous scripts, the "PivotPoints with Momentum confirmation" (https://www.tradingview.com/script/aSJnbGnI-PivotPoints-with-Momentum-confirmation-by-PeterO/), this new script confirms only 1/3 of pivots in the old script on 1m EURUSD chart. Filtering out 2/3 of potentially bad entries is a good result, I'd say :)

This script also fires alerts - alert is triggered as soon as PivotPoint is noticed, on a candle close.

You might wanna join this indicator with other information which should be considered as well - market bias, volume , higher timeframe trend... To make it convenient to join PivotPoints information with other indicators, I have "exported" one plot so you can include it in your own - just use input.source in your own code to have it return 1 for PivotLow ( aka Long entry) and -1 for PivotHigh ( aka Short entry).

You can test and backtest how this script works on demo version here: https://www.tradingview.com/script/QbiaeRjF-Pivot-Points-on-SR-lines-DEMO/

Demo version includes all the features which you can find in premium version of the script, except for the last 30 bars on the intraday chart. This curtain is removed in premium version of the script.