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The TW Pivot ™️

* Coming Soon to TradingView *

The TW Pivot indicator seeks to provide traders with a signal when there is a higher probability for a reversal in price. The backbone of the indicator lies in the fact that price tends to revert back to the mean. Regardless of timeframe or direction, price will inevitably correct when it gets too extended. The TW Pivot indicator uses a few different elements that, when all aligned, attempt to capture said reversion. Let’s talk through the elements that the indicator contains.

As you can see in the image below, there are red and green histogram bars. The red histogram bars represent the steps toward a potential sell signal that could come at the end of the series. Inversely, the green histogram bars represent the steps toward a potential buy signal that could come at the end of the series. Both histograms will darken as the steps get closer to completion.

There is an oscillator in the middle that flips from red to green and follows price action. As price is decreasing, the oscillator is red and as price is increasing, the oscillator is green.

Finally, note the red and green vertical ‘highlighted’ columns that occur at specific points. These represent the confirmed buy and sell signals, they will only occur when all of the factors built into the indicator align. These signals will not occur often, and that’s by design.

As can be seen in the image above, when a sell signal occurs, it is highlighted by a red vertical column. Inversely, when a buy signal occurs, it is highlighted by a green vertical column. Before a sell or buy signal is confirmed a red or green dot will appear above or below the histogram to show that the buy signal is “built” but not yet confirmed.

Signals can also be seen in the price chart itself. When a sell signal is building up, a red triangle pointing up is shown while buy signal shows a green triangle pointing down.

Traders will note instances where the count completes but there is not a vertical highlight. These instances simply mean that all of the criteria that must be met for a buy or sell signal to occur were not met and a trader should still avoid trading in the bias of the count.

Finally, in the image below you’ll see an instance in which the oscillator changes color immediately after the signal is produced. This represents that the signal is no longer valid. An invalidated signal will generally occur during price extremes, so traders should be cautious during times of high volatility and momentum in either direction.

Setting Up Real Time Alerts

Locate the “Alert” button at the top of your chart screen within TradingView.

Under “Condition” make sure TW Pivot is selected.

Using the drop down menu, choose between the four setup conditions.

Locate the “Trigger” setting and chose how often you would like the alert to trigger. (We recommend *Once Per Bar* as this will continue to alert you each time the conditions are met and you will not have to make a new alert each time).

Finally select the “Expiration” you would like the alert to cancel itself. (We recommend selecting *Open-ended alert* as this will cause the alert to remain active indefinitely or until you cancel it manually).

Under the “Notifications” tab select how you would like to be notified when this alert is triggered.

Finally go back to the “Settings” tab and once everything is adjusted correctly select the “Create” button to finalize the alert! (You have the option to add an Alert name however we recommend you leave this blank).

*Pro Tip! Feel free to add multiple alerts for the different timeframes and conditions you are interested in being alerted on for each individual ticker/stock.

Add the TW Pivot Indicator to your charts now!

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