WeeklyPivot VertexFX Indicator

WeeklyPivot VertexFX Indicator indicator is a VertexFX client side VTL indicator, provides the support and resistance pivots, based upon weekly price values. This indicator is very useful to determine weekly limits of trading, and the levels at which the market will enter into resistance and support zones.
It provides three support levels (S1, S2 and S3) and three resistance levels (R1, R2 and R3) alongwith the weekly pivot level.

To calculate these levels, we first calculate the previous week's range, which is previous week's High minus previous week's Low.The calculations for P, R1, S1, R2, S2, R3 and S3 are as follows :

P = (Open + High + Low + Close) / 4
R1 = 2 x P - Low
S1 = 2 x P - High
R2 = P + (High - Low)
S2 = P - (High - Low)
R3 = 2 x P + (High - 2 x Low)
S3 = 2 x P - (2 x High - Low)

The weekly prices tend to stay within the S3 and R3 band. So, reversal strategies can be employed between S3 and R3. The trade can expect the direction to reverse at support and resistance levels. When the price touches the support level, it will bounce above, and when the price reaches the resistance level it falls back.

Breakout strategies can be employed beyond S3 and R3. When the price breaks above R3 or below S3 decisively with volume, stop losses should be engaged, and the trade should consider trading in the direction of the breakout.<span style="color: rgb(51, 51, 51); background-color: rgb(242, 246, 248);">https://youtu.be/LcIY-o3VqxM