Custom Trading Scripts

Your Online Source For Stock Codes

CTS Pivot Levels Study


This script is a study designed to help traders identify and visualize potential pivot levels on a price chart. Pivot levels are significant support and resistance levels that can influence price movement. Traders often use pivot levels to make trading decisions, manage risk, and set profit targets. The clouds are used to define zones around each pivot level. By adding the study multiple times with different pivot bar number settings, you can visualize various pivot level configurations on the price chart. Examples for bar number settings (5, 8, 13, 21, 34, 55), fibonacci sequence.

Traders can use the study as follows:

  • Identify Potential Reversal Points: Pivot levels can act as potential reversal points. A trader might look for price approaching a pivot level and observe price behavior (e.g., bounce or breakout) to make trading decisions.
  • Set Profit Targets: Traders can use pivot levels to set profit-taking levels. For example, if the price is approaching a resistance level, a trader might consider taking profits on a long position.
  • Manage Risk: Pivot levels can also be used to set stop-loss orders. If the price breaks below a support level, it might signal a potential downtrend, prompting a trader to exit a long position.
Remember that while pivot levels can provide valuable insights, they should be used in conjunction with other technical and fundamental analysis tools to make well-informed trading decisions. Additionally, it’s essential to customize the study settings and test it in your trading platform to ensure it aligns with your trading strategy and preferences.

Please note that this script is for educational purposes and cannot be shared due to user agreement restrictions.