HeWhoMustNotBeNamed

Next Pivot Projection [Trendoscope]

Still experimental. Extending further on the divergence backtest results - in this script we try to project next 2 pivots (including one unconfirmed pivot )

🎲 Previous experiments
1. Divergence-Backtester
2. Divergence-Backtester-V2

🎲 Additions
  • Apart from collecting the stats on number of occurrences of HH, HL, LH, LL - this script also keeps track of average ratio for each levels and average bars.
  • Based on these data, we try to calculate the next pivot projections including possible bar and price.
  • Cloud covering the candles indicate historical levels of average HH, HL, LH, LL projections.

Hover on projection labels to find more details in tooltips.

🎲 Overall method in a nutshell

🎲 Going bit deeper
🎯 Unconfirmed Pivot and its projection - Last pivot of the zigzag is always unconfirmed. Meaning, it can potentially repaint based on further price movements. But, projection of the unconfirmed pivot will not change as it will be based on previous two pivots - both of which are confirmed.


🎯 Next Pivot Projection - Next pivot is projected based on last two pivots - which include last unconfirmed pivot . Hence, these projections can potentially repaint based on the last pivot repaint.


🎯 Historical projections displayed as cloud - Historical projection values are displayed as cloud around pivots .
A cloud above represents area from average lower high range to average higher high range. Cloud color is green if average ratio of pivot high is more than 1. Red Otherwise.
A cloud below represents area from average higher low range to average lower low range. Cloud color is red if average ratio of pivot high is more than 1. Green otherwise



Release Notes: Small update - cloud fill is based on the historical ratio of HH/LH and LL/HL instead of basing that on the average ratio. Average ratio can be misleading - it would have been nice to get the median instead. But, it is not easy to achieve this. Will keep trying to improve further ;)

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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