Pivot Point SuperTrend Strategy +TrendFilter

This trading strategy uses the "Pivot Point Supertrend" indicator by LonesomeTheBlue. It generates buy signals when the price trend changes from bearish to bullish and is above a calculated pivot center line, and sell signals when the trend changes from bullish to bearish and is below the center line. It plots pivot points and signals within a user-defined time window.

To trade this strategy manually on TradingView:

• Determine Pivot Points with the High/Low method over a set period (the 'prd' variable).
• Calculate the Center Line, a weighted average of recent Pivot Points.
• Use the Average True Range (ATR) over your chosen period ('Pd') and a multiplier (the 'Factor') to establish the upper and lower Supertrend bands.
• Identify the trend by comparing the current close price with the previous upper or lower band; a close above the lower band signals an uptrend, while below the upper band indicates a downtrend.
• Combine this trend determination with a Moving Average calculated over a chosen period (the 'periodes_ma' input) as an additional filter.
• Only take buy signals during your defined time window (using 'From' and 'To' input dates) when the trend flips to bullish and the close is above the Moving Average.
• Sell when the trend flips to bearish and the close is below the Moving Average, again, considering your time window.
• Optional: plot pivot points, buy/sell labels, center line, and support/resistance levels if desired by changing the respective input flags to true.

Improving the Pivot Point SuperTrend Strategy +TrendFilter for manual trading on TradingView involves fine-tuning various components such as indicator settings, trade entries, and exits. A focus on enhanced trend validation, nuanced signal interpretation, and adaptive trade management can leverage manual discretion effectively.

• Optimize Indicator Parameters: Experiment with different periods and multipliers for the Pivot Points, SuperTrend, and the moving average trend filter. For instance, try varying the ATR Factor to adjust responsiveness to volatility, or altering the Pivot Point period to better suit the traded timeframe's characteristics.
• Conduct Multi-timeframe Analysis: To confirm the validity of signals, cross-verify the trend across multiple timeframes. For instance, if trading on a 1-hour chart, check that the 4-hour and daily charts also reflect a similar trend direction before proceeding with the trade.
• Integrate Price Action: Before entering a trade, scrutinize the price action near Pivot Points. Look for confirmation in the form of chart patterns or candlestick formations that align with the trend indicated by your strategy.
• Adapt Based on Market Conditions: Be dynamic with trade entries and exits. In a clear trending market, consider extending the profit targets. Conversely, tighten stops during choppy or uncertain conditions to manage risk more effectively.
• Incorporate Additional Filters: Add filters such as volume indicators to validate the strength behind a trend or a pivot reversal. Heavier volume on trend days can confirm the likelihood of continuation.
• Manual Stop-Loss and Take-Profit Management: Instead of fixed stops and targets, use a trailing stop-loss that moves with the SuperTrend line or a significant moving average. Take profits strategically at key resistance levels (in uptrends) or support levels (in downtrends).
• Backtest and Journal: Backtest the tweaked settings on historical data. Keep a detailed trade journal outlining why each trade was taken, including emotional state, to refine decision-making patterns.
• Risk Management: Adjust position sizes based on the probability of win and the effectiveness shown in backtests. Use risk to reward ratios in combination with win rate calculations to determine the suitability of each trade.

By incorporating these improvements to the Pivot Point SuperTrend Strategy +TrendFilter in manual trading, one can potentially increase the robustness and overall performance of the trading approach, leveraging human judgment to complement technical signals.

The Pivot Point SuperTrend Strategy +TrendFilter is tailored for traders who favor a trend-following approach, seeking to capitalize on sizeable market moves. It is particularly suited for:

• Intraday and Swing Traders: Those who execute trades within a single day or hold positions for several days will benefit from the dynamic nature of Pivot Points and SuperTrend indicators.
• Technical Traders: Traders who rely on technical analysis and prefer using indicators to identify entry and exit points.
• Systematic Traders: Those who appreciate a structured trading plan and seek to minimize emotional trading decisions.

This strategy demands an understanding of market volatility as it leverages the Average True Range, making it ideal for traders who are adept at adjusting to varying market conditions. The additional trend filter is an asset for traders looking for extra validation before committing to a position, enhancing precision and reducing the likelihood of false signals.

Key takeaways:

• Strategy Essence: Combines Pivot Points and SuperTrend indicators with an added moving average trend filter for trend-following precision.
• How it Works: Uses Pivot Highs/Lows to form a center line, determines bands based on ATR, and transitions between bullish and bearish states as prices interact with bands.
• Usage: Suitable for automatic execution, setting alerts on TradingView, manual trading, or a hybrid approach complementing automation with manual oversight.
• Manual Trading: Entails optimizing settings, confirming trends through multiple timeframes, considering price action, and additional volume analysis.
• Optimization: Involves fine-tuning indicator parameters, integrating price action for entry/exit validation, adapting to market conditions, and adding volume filters.
• Risk Management: Dynamic stop-loss via a trailing method and discretionary take-profit at pivotal levels, along with position sizing adjusted for backtested probability.
• User Base: Intraday to swing traders, focused on technical analysis and structured trading regimes, and capable of navigating market volatility.