FTB-C000581 / Algorithm

Causal Pivot Detection

Causal Pivot Detection is a reproducible OHLC extremum detector that publishes a candidate only after its right neighborhood exists.

Also known ascausal pivot

Definitions

In plain terms

It separates where a high or low happened from when enough later bars arrived to confirm it.

Technical

The selected variant uses asymmetric left/right spans, strict-left and inclusive-right plateau ownership, and a price-unit separation floor.

Scope

A pivot is geometry and timing evidence, not a reversal forecast or trade signal.

Formula

publish a high or low candidate only when its complete right neighborhood exists
LaTeX: \operatorname{confirmation\_index}=\operatorname{event\_index}+R
SymbolMeaningUnit
Rright spanbars

Output unit: bar index

Examples

  • A reviewer computes Causal Pivot Detection on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • A pivot is geometry and timing evidence, not a reversal forecast or trade signal.

Concept relationships

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D08-F01-A01 Primary
  • D08-F01-A02 Prerequisite
  • D08-F01-A04 Prerequisite

Evidence and governance

  1. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  2. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Platform display behavior does not establish financial usefulness or predictive value.

  3. scipy.signal.find_peaks SciPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: This retrospective signal function is not itself a causal OHLC pivot detector.

  4. Closing Price Investor.gov · official standard

    Supports: preferred label, short definition, technical definition, formula

    Limits: A close is not automatically an adjusted close and may vary by market session convention.

Reviewed by
fintech-builder-batch-011
Last reviewed
2026-08-09
Next review
2027-08-09
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.