I have an expanded version of the indicator with R1 and S1 bands integrated into a single line range volatility indicator superimposed on the PP line, and this delivers an immediate view of floating volatility over time relative to the position of the PP, effectively complementing the momentum signal and producing a VIXEN setup situation. We'll look at that next week.
The Pivot Indicator should not be confused with the TS default zigzag indicator which is superimposed on the candlestick chart above. Although the zigzag tracking results look very impressive, the ZZ is in fact a lookback indicator that is always 2 days behind the curve and I use it more as a visual aid than a trade forecaster.
Below is the TS2000i code for the Pivot Indicator. I call it the Pivot Pivot because that's exactly what it is . . a signal of when the pivot pivots. As with most oscillators it's best to "tune" it to your focus stock or ETF . . . in this case it's set to 3 and7, although if you were to optimize it as a trading system the inputs would be 2 and 8.
With these relatively short data series the exponential function in lieu of a simple MA doesn't make much of a difference, but I'm always trying to squeeze as much out of the orange as possible.