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2006issue C111-9

Monoparametric automatic trendline construction

Automatic trendline drawing starts as a construction problem. A single swing-size threshold decides which pivots count, and the line is drawn only through those anchors.

  • A directional price move can exist without a constructible trendline if no qualifying downward or upward corrections form usable pivots.
  • One mechanical method uses a single parameter to set the magnitude of price swings treated as significant.
  • Defining trend as successive higher or lower peaks and troughs ties construction to the presence of both swing highs and swing lows.
  • Candidate swings are accepted only after a close-to-close percentage change exceeds a stated threshold within a lookback window.
Entries in this reading2 entries
Current trackPivot point45 readingsTrendline128 readings

When a move has no line

A trendline is a line drawn through selected swing highs or swing lows to describe directional price structure on a chart. Construction still depends on usable anchors.

A directional price move can exist without a constructible trendline if no qualifying downward or upward corrections form usable pivots. Defining trend as successive higher or lower peaks and troughs ties trendline construction to the presence of both swing highs and swing lows.

One threshold selects the pivots

One mechanical construction method uses a single parameter that sets the magnitude of price swings treated as significant. That monoparametric trendline uses a single swing-size threshold to decide which price moves count as pivots.

A pivot-point is a local peak or trough used as an anchor when constructing a trendline. The threshold is the minimum percentage size of a price swing that qualifies a peak or trough for trendline construction.

Candidate swings are accepted only after a close-to-close percentage change exceeds a stated threshold within a lookback window. Lookback is the number of past bars searched when locating qualifying swings and candidate line anchors.

From anchors to optional channels

Once qualifying pivots exist, the trendline is drawn through the selected swing highs or swing lows. Automatic implementations may also draw optional parallel channel lines once the primary trendline anchors are located.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
15 of 38 in the Pivot point track
20081-3 pp.Next on Pivot pointWrite the exit before the entryOscillator overbought and oversold readings are timing cues and do not, by themselves, mark a specific chart price range for the cover.
All readings on this track · 38 readings
  1. 1988Constructing action-reaction lines from two pivots
  2. 1988Constructing intradaily point-and-figure boxes and pivot ladders
  3. 1991Constructing layered support and resistance from swings, pivots, and retracements
  4. 1994Three locks on a day-session order, then a staged exit
  5. 1994Building a five-level daily pivot grid
  6. 1996Constructing daily pivot points from session prices
  7. 1996Higher time frame balance points as a trend and band filter
  8. 1998Cup-with-handle construction rules
  9. 2000Pivot levels as a daily trade hypothesis
  10. 2001Construct a same-session polarity card around the daily pivot
  11. 2001Trading inside the cup-with-handle before the breakout
  12. 2005A lower-low rebound as one entry, abstention, and stop routine
  13. 2006Constructing session pivot maps from the prior high, low, and close
  14. 2006Constructing a pivot grid for stops and buy-stops
  15. 2006Monoparametric automatic trendline construction
  16. 2008Write the exit before the entry
  17. 2010Dynamic-pivot range grids for trend bias
  18. 2010Reverse-entry exits for pairs, pivots and support
  19. 2011Sequencing pairs, futures pivots, and implied volatility
  20. 2013Constructing Camarilla levels from prior range
  21. 2013Camarilla levels as a multi-timeframe map of reversion and breakout
  22. 2013Constructing a camarilla-grid from a completed lookback range
  23. 2013Constructing daily pivot support and resistance rungs
  24. 2014Constructing daily pivot levels from prior-session OHLC
  25. 2014Next-session pivot support and resistance from daily bars
  26. 2014Constructing session pivot rails from the prior-day range
  27. 2014Evaluating moving-average, pivot, and support-resistance filters
  28. 2016Stage a Trailing stop toward a planned target
  29. 2016Smoothed RSI and full-cut pivots for option-income exits
  30. 2017Constructing a weekly seasonality pivot scaffold
  31. 2017Seasonality and pivot points as scenario maps, not forecasts
  32. 2018Wave pivots, strength filters, and option premium
  33. 2018Constructing Fibonacci and daily pivot support maps
  34. 2018Building a daily pivot lattice with Fibonacci rails
  35. 2019Prior-session pivot channels for same-day entries
  36. 2019Constructing intraday pivot channels from prior-session levels
  37. 2020Variable-strength pivot highs as falsifiable entry filters
  38. 2020A high-volume-pivot long after a multi-week decline
By fieldTrend and channels181 readingsBy year200683 readings
All 45 readings tagged Pivot point
Also on Pivot point5 readings
1984Gold swing chart: failed highs, wash-out, and a boxed pivot range1985Constructing median lines from graded pivots1988Constructing action-reaction lines from two pivots1988Constructing intradaily point-and-figure boxes and pivot ladders1991Constructing layered support and resistance from swings, pivots, and retracements