SHA Multi Pivot Points -v1.0.0

🔎Using Pivot Points in Trading
Traders use PPs to help determine predefined support and resistance levels to guide their trading strategies. In addition, traders identify potential price reversals, trend direction, and breakout opportunities:

Trend identification: PPs act as a reference level to gauge market sentiment. If the price opens above the PP and remains above it, traders interpret this as an uptrend. Conversely, if the price opens below the pivot point and stays below, it suggests a downtrend.
Support and resistance determination: Pivot levels are natural barriers where price reactions frequently occur. Traders may enter long positions near support levels, expecting a price bounce, or if the price approaches resistance levels, traders may consider shorting the asset.
Breakout trading: When the price breaks above resistance or support, it may indicate strong momentum for further movement.
Reversal identification: Traders also look for failed breakouts or price rejections at pivot levels to anticipate reversals.
Trading strategy combinations: Traders can improve accuracy by combining PPs with other technical analysis indicators.


1. Camarilla Pivot Points
📌 Overview:
Developed by Nick Scott in 1989, Camarilla Pivot Points are designed for short-term, intraday trading. Unlike traditional pivots, Camarilla levels are tighter and more responsive, making them useful in volatile markets.

📐 Key Levels:
It generates eight levels:
- Resistance: Initial Level (R1), Mid-range Level (R2), Sell Reversal Level (R3), Breakout Level (R4)
- Support: Initial Level (S1), Mid-range Level (S2), Buy Reversal Level (S3), Breakout Level (S4)

✅ How to Use:
- S1/R1 + RSI or volume divergence to confirm weak momentum and early reversals.
- S2/R2 with price action patterns to enter early on major moves before L3/H3 get tested.
- S3/R3: Mean-reversion zones → price often reverses.
- Break of S4/R4: Strong breakout → trend-following signal.
- Combine with volume or candlestick confirmation for entries.


🔹 2. Floor (Standard) Pivot Points
📌 Overview:
This is the most traditional pivot method, widely used by floor traders. It’s symmetrical and provides a clear central pivot point with equally spaced support and resistance levels.

📐 Key Levels:
- Povit Points : Average price (PPs)
- Resistance : First price ceiling (R1), Stronger ceiling (R2), Extreme resistance (R3)
- Support : First price floor (S1), Stronger floor (S2), Extreme support (S3)

✅ How to Use:
- Above PPs = bullish bias; Below PPs = bearish bias.
- S1/R1 are most used for intraday targets.
- S2–S3/R2–R3 indicate potential extreme moves.
- Often used in combination with momentum indicators.


🔹 3. Woodie Pivot Points
📌 Overview:
Woodie’s pivot formula gives double weight to the closing price, emphasizing the most recent session's sentiment.

📐 Key Levels:
- Povit Points : Weighted average (PPs)
- Resistance : First price ceiling (R1), Stronger resistance (R2)
- Support : First price floor (S1), Stronger support (S2)

✅ How to Use:
- Works best in fast-moving markets.
- PPs acts as a momentum-based balance level.
- Good for scalpers and momentum traders.


🔹 4. Fusion Pivot Points
📌 Overview:
This method differs significantly — it calculates only one support and one resistance level, adjusting based on the relationship between the open and close.

📐 Key Levels:
- Povit Points : Single directional (PPs)
- Resistance : Potential ceiling (R)
- Support : Potential floor (S)

✅ How to Use:
- Not symmetrical → more responsive to price behavior.
- Best for breakout or reversal strategies.
- Use when you're expecting directional momentum.


🔹 5. Classic Pivot Points (Traditional)
📌 Overview:
Also known as Standard or Traditional Pivot Points, this is the default method used by most charting platforms. It offers a balanced and simple framework.

📐 Key Levels:
- Povit Points : Central price level (PPs)
- Resistance : First ceiling (R1), Stronger resistance (R2), Extreme resistance (R3)
- Support : First floor (S1), Stronger floor (S2), Extreme support (S3)

✅ How to Use:
- PPs is the market’s equilibrium point.
- Helps define market structure, bias, and trade zones.
- Combine with order blocks, RSI, or MACD for confirmation.

📊 Summary Comparison :
1. Camarilla Pivot Points
- Focus : Mean Reversion & Breakouts
- Best Use : Scalping, Day Trading

2. Floor Pivot Points
- Focus : General Support/Resistance
- Best Use : Intraday, Swing

3. Woodie Pivot Points
- Focus : Recent Close Emphasis
- Best Use : Momentum Trading

4. Fusion Pivot Points
- Focus : Trend/Breakout
- Best Use : Directional Breakouts

5. Classic Povit Points
- Focus : Market Structure
- Best Use : General Use


⚠️ Disclaimer
The information and tools provided in this script are for educational and informational purposes only. They do not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instrument.

Trading in the financial markets involves risk of loss and is not suitable for every investor. You are solely responsible for your trading decisions. Always do your own research, use proper risk management, and consult a licensed financial advisor before making any financial decisions.