Weekly Pivot Script
Weekly pivot is a resistance and support-based script. It is a top-notch trend reversal detector. Free download.
Description
The market tends to remember areas of interest. In simple terms, the market tends to reverse in previous reversal points. Therefore, you must determine the pivot point to help you make informed trading decisions. This is where the weekly pivot script comes in handy. It shows the pivot points based on the weekly chart. Ideally, the pivot point is calculated using the average of the previous week’s high, low, and close. The script goes a step further to show six resistance and support levels. The pivot point is used to calculate the resistance and support levels.
How to Use the Script
Using the weekly pivot script is pretty much straightforward. You only need to check the resistance, support, and pivot points marked by lines and trade accordingly. Put differently, if the script hits the resistance level from below, you should be ready for a downward reversal. Similarly, price action could reverse and resume an upwards trend after hitting the support level.
Trading Example
The script shows resistance and support levels on a daily timeframe. You only want to wait for the trade to hit these levels and post a reversal signal. For instance, the euro against the dollar is around the weekly pivot. The script has also posted a Doji. Clearly, the market is has retraced downwards from the developing uptrend. You should therefore be ready to enter a long position when the market resumes the uptrend.
Conclusion
The weekly pivot script is a top tool for identifying and trading suitable points of interest in the market. Essentially, you should seek to identify reversal and support levels. Once you identify the level, wait for the price action to hit the levels and post a reversal signal, such as a morning star or a Doji. Enter the trade in the initial trend direction.