[CP]Pivot Boss Multi Timeframe CPR Inception with MACD and EMA

2022년 5월 3일

INTRODUCTION:
This indicator combines multi-timeframe CPR bands with MACD Momentum and EMA trend, all projected on the candlestick chart through a novel visualization.

If you have seen my other indicators on TradingView, you would know that I use floor pivots a lot and “Secrets of a Pivot Boss” is my favorite book. While using floor pivots, time and again I have noticed an interesting price behavior,
Trending moves in price typically start from around the Central Pivot Range (CPR). The CPR could be from ANY timeframe. These moves can easily be caught using simple momentum and trend indicators like MACD and EMA crossovers.
Yes, it is that simple. Follow along to understand how to use this indicator.

INDICATOR SETTINGS:
RANGEBOUND MACD AND EMA MARKINGS:
TradingView limits the max number of labels that can be shown on a chart to 500. Therefore, if you go far back enough, you won't see any markings for the MACD or EMA setups. If you are looking to test the efficacy of this indicator in the past, change the start and end dates to your desired timeframe and then select the ‘Mark MACD and EMA Setups in Range?’ option.

MULTI TIMEFRAME CENTRAL PIVOT RANGE:
Here you can select CPRs and their bands from which timeframes are shown on the chart. I will share my favorite settings later in this description.

CPR CONFIGURATION:
Show CPR Labels: CPRs markings can carry labels, so that you don’t confuse between which line is what. Use this setting to toggle them On/Off.
Show Next Time Period Pivots: Check this option if you want to see the CPR of the next time period. This is typically done to figure out the ’Two Day CPR Relationship’. Read the book, “Secrets of a Pivot Boss”, to understand more.

EMA TREND:
Show EMA on the Chart: EMAs will be plotted on the chart. Standard stuff.
Mark EMA Crossovers on Chart: EMA crossovers will be marked on the chart in diamond shapes. If you are using EMA crossovers, I recommend setting this option to True.
Rest of the EMA settings are fairly obvious.

MACD MOMENTUM:
Projecting MACD parameters directly on the candlesticks is surely going to give you a new perspective about price action and MACD.
Also, in order to better understand the MACD projections on the chart, you can add a standard MACD indicator on the chart with default settings to figure out what my indicator is actually showing you.
Marking MACD Crossovers on Chart: Marks the MACD signal crossovers on the chart. This visualization was a game changer for me.
Show MACD Histogram on Chart: Projects the complete MACD Histogram in a novel fashion (Try it!). You will be able to visually see the ebbs and flow of momentum in the charts.
Mark MACD Histogram Peaks on Chart: Marks only the MACD peaks instead of the complete histogram. Peaks are a great way to enter an ongoing trend and to play an intraday rangebound market.
Rest of the settings are just the standard settings that you will find in a typical MACD indicator.

ALERTS:
Not shown in the settings panel, but I have added alerts for EMA and MACD Crossovers so that you don’t have to sit in front of the charts or constantly check the price all day long.
If you don’t know how to set alerts in TradingView, then please Google it.

INDICATOR USAGE EXAMPLES:
This indicator can be used in intraday as well as in higher timeframes.
There are quite a few variations possible, I personally prefer to use the EMA crossovers in intraday (5m) and MACD on Daily timeframes.
This is just a matter of personal preference, some people might prefer using EMAs only or MACD only in all timeframes.

Here are my personal settings for the intraday 5-minute timeframe:

• Turn on all the CPR pivots starting from Yearly all the way to Daily. You can turn on 6 hourly and 4 hourly as well if you want.
  
• Hourly CPR is mostly used when the price is in a strong trend and you missed the entry and don’t know when to enter. Price will typically experience pullbacks towards the Hourly CPR, before resuming in the direction of the trend. That is your chance to hop onto the bandwagon.
• For Intraday, I keep the Bands off. Just a personal preference here.
  
• You can turn ON the Show CPR Labels, if you want.
  
• Turn ON both the options in the EMA TREND section. You would want to see the EMA crossovers marked on the chart as well as the EMAs themselves, as the distance between the two EMAs will give you an idea about the strength of the trend.
  
• Keep rest of the settings in the EMA section as default (you can change the colors if you wish). I keep the same EMAs as the ones kept in the MACD indicator. I like to keep things simple.
  
• In the MACD MOMENTUM section, turn ON Mark MACD Histogram Peaks on Chart and all the other options turned OFF. Leave the other settings as default. By the way, these are the default settings of the standard MACD Indicator.
  
• You can set up EMA Bullcross and Bearcross alarms if you like.
  

Before checking out the examples, remember one super simple rule:
SOME OF THE BEST TRENDING MOVES IN THE MARKET, BE IT INTRADAY OR OTHERWISE, ORIGINATE IN THE VICINITY OF A LARGER TIMEFRAME PIVOT/CPR.

Look for price settling above/below a pivot, and then a move away from the pivot in any direction is typically a trending move.
You can use hourly pivots or MACD Histogram peaks marked on the chart to enter an existing trend, or add to your positions.
Let’s have a look at a few recent intraday examples from the Crypto, Indian, and US equity markets.
I have added my comments in the charts to make you easily understand what is going on.
Understand that both, moving average crossover and MACD, will give out a lot of signals (chop) every day. But almost 70% of them are going to be fake signals. It is the signals that you get when the price is near a Pivot, that tend to convert into gorgeous trending moves that last.

BTC 5m Charts




NIFTY Futures 5m Charts (good intraday trends are hard to find here, as the market is very efficient)




TSLA 5m Charts





Some important points for using this indicator in higher timeframes:

• For higher timeframes, my personal preference is to go with the MACD indicator. I personally find MACD to be lethal on daily and weekly timeframes, if you know how to use it well.
  
• The default settings of the indicator are the settings I use for both, Daily and Weekly, timeframes. Additionally, I turn off the CPR labels.
  
• In theory large trending moves still have a big probability to start near an important pivot level, however, in larger timeframes, trending moves can start from anywhere. They need not start in the vicinity of any important pivot (but they often do!).
  
• Weekly pivots can act as great pullback levels when the price is in strong momentum, when trading on the daily timeframe.
  
• Quarterly Pivots act as great pullback levels when the price is in strong momentum, when trading on the weekly timeframe.
  

BTC Weekly Chart

BTC Daily Chart

Nifty Weekly Chart

Nifty Daily Chart

NASDAQ Weekly Chart

NASDAQ Daily Chart


FINAL WORDS:

• Please understand that I have Cherry Picked the examples to showcase the capability of the indicator and its usage.
  
• DO NOT conflate the accuracy of examples with the accuracy of this indicator.
  
• Biggest catch is the fact that this indicator, like every other indicator out there, will have whipsaws. Some I have also marked in the example charts.
  
• You need to come up with your own technique to avoid whipsaws, one technique I have shared here…… big moves typically start near pivots.
• Work on avoiding whipsaws and finding you own edge in the markets.
  
• If you really want to learn how to use Pivots, read the book ’Secrets of a Pivot Boss’. This book can change your life.