Clone Pivots. Oct_2023

How it works

The indicator calculates pivots by first determining the all-time high and low of a price chart, then systematically dividing the price range into segments. Initially, the first pivot point is created by averaging the all-time high and low, effectively splitting the price range in half.

Subsequent divisions continue to bisect the price range, creating multiple reference levels that traders can use for analysis. Users can customize the depth of these divisions, allowing for flexible and granular price segmentation. An alternative method using Fibonacci divisions is also available, providing traders with multiple analytical approaches to understanding price structure.

Why it may be useful

Clone pivots offer traders a unique method of understanding price dynamics by creating strategic reference points that can reveal potential support and resistance levels. These pivot points help traders identify key price zones where significant market movements might occur, enhancing decision-making in trading strategies.

By providing a systematic approach to price segmentation, these pivots can be particularly useful for ladder trading and understanding underlying price structures. The method's flexibility allows traders to adapt the indicator to various market conditions and trading styles, making it a versatile tool for technical analysis.

When to explore it

This indicator works best in markets with clear trending or ranging behavior, where price movements can be effectively analyzed through systematic segmentation. Traders can utilize these pivots during periods of price consolidation or when seeking to identify potential entry and exit points based on structured price levels.

The clone pivots are especially effective when 50% levels are considered, as they tend to align well with natural price structures. Traders should experiment with different depths and division methods to find the most suitable configuration for their specific trading instrument and strategy.

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