/**
* Pivot Points Standard Indicator
* Support and resistance levels calculated from previous period OHLC data
*/
export interface PivotPointsData {
pivotPoint: number | null
resistance1: number | null
resistance2: number | null
resistance3: number | null
support1: number | null
support2: number | null
support3: number | null
currentPosition: 'above_r3' | 'between_r2_r3' | 'between_r1_r2' | 'between_pp_r1' | 'between_pp_s1' | 'between_s1_s2' | 'between_s2_s3' | 'below_s3' | null
}
export function calculatePivotPoints(
high: number,
low: number,
close: number
): PivotPointsData {
// Input validation
if (!isFinite(high) || !isFinite(low) || !isFinite(close)) {
return {
pivotPoint: null,
resistance1: null,
resistance2: null,
resistance3: null,
support1: null,
support2: null,
support3: null,
currentPosition: null,
}
}
if (high < low) {
throw new Error('High price must be greater than or equal to low price')
}
if (close < low || close > high) {
throw new Error('Close price must be between low and high prices')
}
// Pivot Point = (High + Low + Close) / 3
const pivotPoint = (high + low + close) / 3
// Resistances
const resistance1 = (2 * pivotPoint) - low
const resistance2 = pivotPoint + (high - low)
const resistance3 = pivotPoint + 2 * (high - low)
// Supports
const support1 = (2 * pivotPoint) - high
const support2 = pivotPoint - (high - low)
const support3 = pivotPoint - 2 * (high - low)
return {
pivotPoint,
resistance1,
resistance2,
resistance3,
support1,
support2,
support3,
currentPosition: null, // Will be set by caller with current price
}
}
export function getPricePositionRelativeToPivot(
currentPrice: number,
pivotData: PivotPointsData
): 'above_r3' | 'between_r2_r3' | 'between_r1_r2' | 'between_pp_r1' | 'between_pp_s1' | 'between_s1_s2' | 'between_s2_s3' | 'below_s3' {
const { pivotPoint, resistance1, resistance2, resistance3, support1, support2, support3 } = pivotData
if (!pivotPoint || !resistance1 || !resistance2 || !resistance3 || !support1 || !support2 || !support3) {
return 'between_pp_s1' // Default neutral position
}
if (currentPrice >= resistance3) return 'above_r3'
if (currentPrice >= resistance2) return 'between_r2_r3'
if (currentPrice >= resistance1) return 'between_r1_r2'
if (currentPrice >= pivotPoint) return 'between_pp_r1'
if (currentPrice >= support1) return 'between_pp_s1'
if (currentPrice >= support2) return 'between_s1_s2'
if (currentPrice >= support3) return 'between_s2_s3'
return 'below_s3'
}
