Pocket Pivot

Pocket Pivots were introduced in the book "Trade like an O'Neil Discipline" by Gil Morales and Dr .Chris Kacher.

According to the book, following are the characteristics of a pocket pivot:

  • Just prior to the pocket pivot , as the stock is moving within its overall base structure, tighter price formations, that is, less volatility should be evident in the stock’s price/ volume action as viewed on its chart. The stock should have been “respecting” or “obeying” the 50-day moving average during the price run that occurred prior to the time the stock began building its current base
  • On the pocket pivot you want to see up-volume equal to or greater than the largest down-volume day over the prior 10 days

What will you get with this tool?

This tool will plot the following:

  • Simple Moving Average (10, 21, 50, 200)
  • Pocket Pivot Buy Signal

Conditions when Pocket Pivot signal will be generated:

  • Stock should be trading above previous day closing price
  • Stock should be trading above 10 day moving average
  • Stock should be within 5% of 10 day moving average
  • Stock should be trading above 200 day moving average
  • Current day volume should be greater than maximum of all down(red) days in previous 10 days


This tool will act as a supporting tool to help you find Pocket Pivots . Please follow proper risk management and trade planning before using any inputs from this tool in your trading.

Suggestions or Questions?

Feel free to write to me at nifty
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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