Last Updated: March 28, 2025

Key Takeaways

Pivot points identify key market structure areas derived from significant high and low points, helping traders spot critical support and resistance levels
Setting pivot point values to 20 in TradingView helps fine-tune the indicator to focus on the most significant market levels, while customizing colors improves visibility
Clusters of pivot points often indicate strong support or resistance zones; when price repeatedly touches these clusters without breaking through, they likely represent significant market levels
Breakouts through pivot point clusters frequently lead to strong directional moves; a breakdown below support often signals a bearish trend, while a breakout above resistance indicates a bullish run
Combining pivot points with chart patterns such as triangles, wedges, or channels enhances trading strategies by providing additional confirmation, potentially improving accuracy and trading results

Pivot points are a powerful tool in technical analysis, that can help traders identify key support and resistance levels in the market. In this guide, we’ll dive into how to use the Pivot Points High Low indicator on TradingView to enhance your trading strategy. Whether you're trading forex, stocks, or crypto, understanding pivot points can give you an edge in spotting critical market movements.

For visual learners, check out the full video “PIVOT POINT TRADING STRATEGY (Auto TradingView Indicator)”

What Are Pivot Points in Trading?

Pivot points are calculated on a chart indicating key market structure areas. These levels are derived from significant high and lows points. The Pivot Points High Low indicator goes a step further by visually highlighting pivot point high and low points on the chart automatically, making it easier to identify critical areas for trading.

How to Add Pivot Points High Low on TradingView

To start using this indicator, follow these steps:

Step 1: Access the Indicator

Open TradingView and click on the Indicators tab.
Search for Pivot Points High Low in the search bar.
Select the indicator created by TradingView titled Pivot Points High Low.

The Pivot Points High Low Indicator in TradingView

Configuring the Pivot Points High Low Indicator

Once added to your chart, the default settings might not be optimal. Let’s adjust them for better visibility and usability:

Go to the Settings tab for the indicator in the upper-left corner.
Change the Pivot High and Pivot Low settings to 20. This adjustment fine-tunes the length of pivot points on the chart, helping you focus on significant market levels.
Customize the colors for better clarity:
- Set Pivot High points to black.
- Set Pivot Low points to white.

After these changes, the pivot points will be more visually distinct, allowing you to analyze the chart more effectively (if you have a white background).

Pivot Point Settings for more significant support and resistance levels.

Using Pivot Points for Support and Resistance

Pivot points are invaluable for identifying support and resistance levels. Here’s a simple yet effective approach:

Cluster Analysis: Look for areas where multiple pivot points are close together. These clusters often indicate significant support or resistance zones.
- For example, if the price repeatedly touches a cluster of pivot points without breaking through, that area likely serves as strong support or resistance.
Breakout Confirmation: When the price breaks through a cluster of pivot points, it often leads to a strong directional move.
- For instance, a breakdown below a support zone marked by pivot points could signal a bearish trend, while a breakout above resistance may indicate a bullish run.

Practical Example of Pivot Points in Action

Spotting a Bearish Breakdown

In one scenario, the pivot points formed a strong support area. Over time, the price printed lower highs, creating a descending triangle pattern. As the price got squeezed tighter between the support zone and the downward-sloping resistance, it finally broke below the support. This resulted in a sharp move to the downside.

Identifying Key Resistance

On another occasion, multiple pivot highs aligned to form a critical resistance level. When the price finally broke through this resistance, it triggered a strong bullish rally.

These examples show how pivot points trading strategies can provide actionable insights for your trades.

Bonus Tip: Combine Pivot Points with Chart Patterns

To enhance your strategy, combine pivot points with chart patterns such as triangles, wedges, or channels. Pivot points often align with these patterns, providing additional confirmation for your trades.

Why Use Pivot Points High Low Indicator?

The Pivot Points High Low indicator is ideal for traders who want:

A simple yet effective tool for identifying key market levels.
An easy way to visualize support and resistance zones.
A method to spot potential breakouts and reversals.

Whether you’re a beginner or an experienced trader, incorporating pivot points into your analysis can potentially significantly improve your trading results.

Frequently Asked Questions about the Pivot Point High Low Indicator

FAQ

What exactly are pivot points in technical analysis?

Pivot points in technical analysis are significant price levels calculated based on important high and low points on a chart. Unlike traditional pivot points that use mathematical formulas based on previous time periods, the Pivot Points High Low indicator in TradingView automatically identifies and marks significant swing highs and lows. These points represent areas where the price has reversed direction in the past, making them potential support or resistance levels for future price movements.

How accurate are pivot points for predicting support and resistance?

Pivot points can be highly effective for identifying potential support and resistance levels, especially when multiple pivot points cluster in a specific area. The accuracy increases when these clusters align with other technical indicators or chart patterns. However, like all technical analysis tools, they aren't 100% accurate and work best as part of a comprehensive trading strategy. Their effectiveness also tends to be higher in trending markets and on higher timeframes where noise is reduced.

Can pivot points be used across all markets and timeframes?

Yes, pivot points can be effectively used across all markets including forex, stocks, cryptocurrencies, and commodities. They're also applicable to various timeframes from intraday charts to weekly and monthly views. However, the significance of pivot points typically increases on higher timeframes, as these represent more substantial market turning points. For day trading, the 1-hour and 4-hour charts often provide reliable pivot points, while swing traders might focus on daily and weekly pivot points.

What's the difference between pivot points and other support/resistance indicators?

The key difference is that pivot points specifically identify historical turning points in price action, where the market has actually reversed direction. Other support/resistance tools like moving averages or Fibonacci levels are based on mathematical calculations rather than actual price behavior. Additionally, the Pivot Points High Low indicator automatically plots these points directly on your chart, making them visually apparent without manual drawing. This gives traders a clear view of where price has historically respected certain levels, potentially providing more psychologically significant support and resistance zones.

How do I know if my pivot point settings are optimal?

The optimal settings depend on your trading style, timeframe, and the specific market you're trading. The recommended setting of 20 for both Pivot High and Pivot Low is a good starting point as it focuses on significant market levels while filtering out minor fluctuations. You can test the effectiveness of your settings by observing how often price respects these levels. If you're seeing too many pivot points (causing clutter), increase the value. If you're missing important turns, decrease it. Ultimately, the best approach is to backtest different settings on historical data for your specific trading strategy and market to find the most reliable configuration.

QUIZ: Test Your Pivot Point Trading Strategy Knowledge

Conclusion

Mastering pivot points can be useful for any trader looking to improve their technical analysis. By using the Pivot Points High Low indicator on TradingView, you can easily identify critical support and resistance levels, anticipate market moves, and potentially level up your trading strategies.

About the Author: Mind Math Money

I bought my first stock at 16, and since then, financial markets have fascinated me. Understanding how human behavior shapes market structure and price action is both intellectually and financially rewarding.

I’ve always loved teaching—helping people have their “aha moments” is an amazing feeling. That’s why I created Mind Math Money to share insights on trading, technical analysis, and finance.

Over the years, I’ve built a community of over 200,000 YouTube followers, all striving to become better traders. Check out my YouTube channel for more insights and tutorials.

The Pivot Point Trading Strategy: How to use the TradingView Pivot Point Indicator

Key Takeaways

What Are Pivot Points in Trading?