Parallel Pivot Lines [LuxAlgo]

Displays lines connecting past pivot high/low points with each line having the slope of a linear regression. This slope can also be controlled by the user with the 'Slope' setting. Each line can be used as a support or resistance by the user.

Settings

• Length : Pivot length. Use higher values for having lines connected to more significant pivots points.
  
• Lookback : Number of lines connecting a pivot high/low to display, with a total of lines equal to Lookback*2
  
• Slope : Allows the user to multiply the linear regression slope by a number within -1 and 1
  

Limitations

The script has currently several real time behavior limitations. Lines are displayed retrospectively and will not update with the arrival of new bars. Readjusting the indicator to newer pivots will require the user to either hide/unhide the indicator or change its settings.

High Length or Lookback values might not return any lines if the location of a pivot point is outside the defined buffer size of the indicator (set as 5000 bars).

How To Use

The indicator can be used to get supports and resistances and is more so closer to a drawing tool due to its limitations. The lines not updating with the arrival of new bars have the advantage of providing fixed supports/resistances.

The Slope setting allows the user to control the angle and direction of the lines. Using a Slope of 1 will return lines with the same slope as the one of a linear regression fit from the farthest pivot point displayed by the indicator to the most recent bar.

The chart above shows the indicators and a linear regression in orange.

If you want to have horizontal lines, use a Slope equal to 0.

Finally using a negative slope value will allow the user to have lines in opposite directions to the main trend.

Conclusion

We hope you like this indicator (drawing tool) and find it useful for drawing your support & resistances in a unique way!

Release Notes:

Update to script title & minor changes.