SVEPivots

Description

The SVEPivots study is a support/resistance technical indicator developed by Sylvain Vervoort that is based upon the observation that uptrend and downtrend price swings are quite often of almost equal lengths. The indicator estimates future price targets by calculating the measured move (price projection based on the previous swing). By default, the SVEPivots indicator calculates daily pivot levels, however, these can be calculated on any standard aggregation period. The daily pivot levels are defined by price values of the previous day, namely, high, low, and close. Using these values, the study projects seven intraday price targets: three support levels, three resistance levels, and a pivot point level.

These levels are calculated using the following formulas (PH, PL, and PC stand for previous day's high, low, and close price, respectively):

  • PP = (PH + PL + PC) / 3;
  • R1 = 2 * PP - PL;
  • R2 = PP + (PH - PL);
  • R3 = 2 * PP + (PH - 2 * PL);
  • S1 = 2 * PP - PH;
  • S2 = PP - (PH - PL);
  • S3 = 2 * PP - (2 * PH - PL).

In addition, the following reference levels are calculated:

  • Resistance Mean value 1: The midline between the pivot point and the first resistance level
  • Support Mean value 1: The midline between the pivot point and the first support level
  • Resistance Mean value 2: The midline between the first and the second resistance levels
  • Support Mean value 2: The midline between the first and the second support levels
  • Resistance Mean value 3: The midline between the the second and the third resistance levels
  • Support Mean value 3: The midline between the second and the third support levels
  • Previous low: The previous day's (or period's) low price
  • Previous high: The previous day's (or period's) high price

Input Parameters

Parameter

Description

aggregation period The period on which the pivot point and support/resistance levels are calculated.

Plots

Plot

Description

R3 The third resistance level.
R3M The third mean resistance level.
R2 The second resistance level.
R2M The second mean resistance level.
R1 The first resistance level.
R1M The first mean resistance level.
HH The previous day's (or period's) high price.
PP The pivot point level.
LL The previous day's (or period's) low price.
S1M The first mean support level.
S1 The first support level.
S2M The second mean support level.
S2 The second support level.
S3M The third mean support level.
S3 The third support level.

Further Reading

1. "Price Projections" by Sylvain Vervoort. Technical Analysis of Stocks & Commodities, November 2014.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

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