Recruitment of participants Pivot confluence strategy

Pivot confluence strategy

This strategy uses the pivot combining methodology such that if a new pivot is discovered that combines with a previous level, and if that level has been combined over or equal to a user input number of times, then the strategy flags a potential trade.


A further condition for entry depends on the number of combined pivots above and below the last pivot found. The program counts the number of combined pivots above the pivot that exceed a user specific weighting (specified by the line sensitivity user input – see below) and those below that exceed a specified weighting.

For a potential long trade the number of pivots below the pivot that exceed a user specified weighting must be greater than those above (that exceed a user specified weighting).

For a short trade the number of pivot lines above the pivot that exceed a user specified weighting must be greater than those below that exceed user specified weighting. The program then evaluates additional user created filters to determine whether to enter a trade. (The above explanation assumes that DirVector is set to zero – see video for more explanation)

The following image shows the filter part of the program:


For example, if a simple stochastic filter were, if the combined pivots indicate a potential trade then if SlowD was less than 20, enter long next bar at market. If SlowD is greater than 80 then sell short next bar at market.

The program was developed in TradeStation 8.7 (and so is compatible with versions 8.7 and above, including 10).