gogo2/WILLIAMS_PIVOT_SYSTEM.md

Williams Market Structure Pivot System

Overview

The dashboard now displays the complete Williams Market Structure analysis with 5 recursive levels of pivot points and trend analysis (higher highs/higher lows for uptrends).

What's Displayed

1. Five Levels of Recursive Pivots

Each level analyzes pivot points at different timeframes:

• Level 1 (Short-term): Direct swing highs/lows from 1-minute OHLCV data

  • Small red/blue triangles (size 6)
  • Most granular view of market structure

• Level 2 (Medium-short): Pivots from Level 1 pivots

  • Medium orange/light blue triangles (size 8)
  • Filters out noise from Level 1

• Level 3 (Medium): Pivots from Level 2 pivots

  • Light orange/lighter blue triangles (size 10)
  • Intermediate trend structure

• Level 4 (Medium-long): Pivots from Level 3 pivots

  • Yellow/very light blue triangles (size 12)
  • Longer-term swing points

• Level 5 (Long-term): Pivots from Level 4 pivots

  • Bright yellow/pale blue triangles (size 14)
  • Broadest market structure view

2. Trend Analysis (For Each Level)

The system calculates trend direction using classic Williams methodology:

• Uptrend ↑: Higher highs AND higher lows
• Downtrend ↓: Lower highs AND lower lows
• Sideways →: Mixed or insufficient pattern

3. Trend Strength (0-100%)

Each level also provides a trend strength score based on:

• Consistency of pivot point progression
• Average strength of individual pivots
• Number of confirming pivots

Dashboard Display

Pivot Markers

• High Pivots: Triangle pointing DOWN (potential resistance)
• Low Pivots: Triangle pointing UP (potential support)
• Color/Size: Larger and brighter = higher level = longer-term significance

Trend Annotation (Top-left corner)

Shows all 5 levels of trend analysis:

Williams Trends:
L1: ↑ 75%   (Short-term uptrend, strong)
L2: ↑ 68%   (Medium-short uptrend, strong)
L3: → 52%   (Medium sideways)
L4: ↓ 61%   (Medium-long downtrend, moderate)
L5: ↓ 71%   (Long-term downtrend, strong)

The border color indicates the Level 5 (longest-term) trend:

• Green border = Long-term uptrend
• Red border = Long-term downtrend
• Orange border = Long-term sideways

How It Works

Recursive Calculation

1. Level 1: Find swing highs/lows in raw 1m OHLCV data
2. Level 2: Treat Level 1 pivots as "candles" and find swing points among them
3. Level 3: Treat Level 2 pivots as "candles" and find swing points
4. Level 4: Treat Level 3 pivots as "candles" and find swing points
5. Level 5: Treat Level 4 pivots as "candles" and find swing points

Trend Detection

For each level, the system:

1. Gets the last 10 pivot points (or all if < 10)
2. Separates into highs and lows
3. Compares most recent highs/lows to previous ones
4. Determines if forming higher highs/higher lows (uptrend) or lower highs/lower lows (downtrend)

Usage

Toggle Pivots On/Off

Use the "Show Pivot Points" toggle in the Session Controls panel.

Interpret Multiple Levels

• All levels aligned: Strong directional move

  • Example: L1↑ L2↑ L3↑ L4↑ L5↑ = Strong sustained uptrend

• Lower levels diverging: Potential reversal

  • Example: L1↓ L2↓ L3→ L4↑ L5↑ = Short-term correction in long-term uptrend

• Mixed signals: Market indecision or transition

  • Example: L1↑ L2→ L3↓ L4→ L5↑ = Choppy market within long-term uptrend

Trading Applications

• Level 1-2: Scalping entries/exits
• Level 3: Intraday swing trades
• Level 4-5: Position trading, trend confirmation

Data Source

• Uses last 2000 candles of 1-minute data
• Recalculated on each chart refresh
• Cached in pivot bounds system (refreshes daily)

Technical Details

• Algorithm: Larry Williams Market Structure Analysis
• Minimum pivot distance: 3 candles (configurable)
• Pivot strength: Based on distance from surrounding highs/lows, volume, and formation duration
• Files:
  • core/williams_market_structure.py: Core algorithm
  • core/data_provider.py: Data integration
  • web/clean_dashboard.py: Visualization