You know how drawing trend lines manually can be time consuming, subjective, and let’s face it, sometimes a bit of a headache. You’re trying to connect those pivot highs and lows, watching for resistance and support levels, and sometimes those lines just don’t seem to fit. Then there is the challenge of keeping track of when a trend line is breached. Well, say goodbye to those manual trendline problems. I found a new indicator on TradingView that will do all the work for you. This tool is called the Trendline Pivot, and it automates the process, ensuring consistency and accuracy, all while saving you valuable time.
It not only identifies and draws the trend lines for you but it also alerts you when price levels breach a trend line. Plus, it even differentiates between active and breached trend lines by changing the line format. So stay tuned because in this article, I will show you how to use this indicator correctly to start making profits from any market.
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So, how can we add this Trendline Pivot indicator to the chart? Simply click on the indicators and search for the Trendline Pivot tool by QuantView. The Trendline Pivot indicator is a tool that automatically draws and identifies downward and upward trend lines. These trend lines originate from and connect pivot highs or pivot lows. They serve as potential points of resistance for downward trend lines and support for upward trend lines within the market.
Once a trend line is identified, it continues to be drawn and progresses with the price until one of two conditions is met. The first condition is when the price closes above a downward trend line or below an upward trend line. When this happens, an X is displayed, signaling that resistance or support has been broken. The second condition is when the trend line reaches a user-defined maximum length. When the price closes above a downward trend line or below an upward trend line, the trend line transforms into a dashed format, allowing for clear differentiation from active, non-breached trend lines.
The Trendline Pivot indicator is fully customizable. You can modify line colors, pivot length, and the number of lines you wish to see on the chart. You can also set the maximum line length. If, for example, you set this number to 100, the trend line will disappear if it doesn’t get broken after 100 bars. The indicator works on any timeframe and in any market.
There are various strategies you can try with this tool. For instance, you can buy when an upward trend line is breached. A trendline breakout to the upside indicates strong bullish momentum. Conversely, you can sell when a downward trend line is broken. Just like it happened right here. By the way, we’re currently looking at Bitcoin on a five-minute chart. You can even use the higher timeframe to confirm the signals given in the current one. For example, we had a buy signal in the five-minute chart, but if we look at the four-hour chart, we see the trend reverses, so definitely not the best time to buy.
Another strategy you can try with this tool is a pullback to trendline strategy. This one involves buying the stock when the price bounces off the lower trend line without breaching it. In this case, you would buy somewhere…
