Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
-
Welcome Guests
Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.
Search the Community
Showing results for tags 'pivot'.
Found 10 results
-
Half Gap description: this indicator would draw a line half way between previous day's close and today's 1st bar open e.g. gap up opening: prev close = 100, today's open = 102 a line will be drawn at the half way point 101 gap down opening: prev close = 100, today's open = 98 a line will be drawn at the half way point 99 if the day's open is the same as previous close, a line will be drawn at the previous close note: This indicator was written in MultiCharts I have not tested it in TradeStation or other EasyLanguage compatible programs For importing instructions, please see your software's users manual Half Gap.txt Half Gap (MultiCharts).pla
-
Initially used by floor traders, pivot points have become widely popular among the trading public. Pivot points are simple mathematical calculations used to determine support and resistance levels based on the close, high, and low. Depending on a traders preference, one may choose to use the midpoints, weekly, and monthly pivot levels in combination with the daily pivot levels. Pivot points can also be ranked in terms of importance: monthly coming first, weekly second, and the daily pivot in third. Similar to moving averages, the 200 period moving average will act as a stronger support/resistance than the 20 period moving average. This concept can be applied to pivot points as well. The S3 and R3 pivot points are usually a good level to fade since price will usually remain between these two levels. I will use the midpoints for the daily pivot point calculations but not for the weekly and monthly pivots. Here is the formula I use for pivot points: R3 = R2 + RANGE (same as: PP + RANGE * 2) R2 = PP + RANGE R1 = (2 * PP) - LOW PP = (HIGH + LOW + CLOSE) / 3 S1 = (2 * PP) - HIGH S2 = PP - RANGE S3 = S2 - RANGE (same as: PP - RANGE * 2) Simply divide the two pivots to find the midpoints. Example: (S1+S2)/2 = midpoint There are some rules when applying midpoints to the daily pivot calculations. In trading the Dow mini-sized futures contract, the distance between the two pivots must be over 40 points when applying the midpoint. The only exception to this rule is when the midpoints line up with the previous day’s high, previous day’s low, weekly pivot, monthly pivot, value low, value high, POC, or an unfilled gap. By using the midpoints for the daily pivot calculation, you will get 13 set of numbers between S3 and R3. Calculating the weekly and monthly pivots (without midpoints) will give you an additional 14 set of numbers. This will give you a total of 27 price levels. Advanced Pivot Point Analysis My core trading method is based on identifying key price levels using pivot point cluster zones. A cluster zone is an area in which pivot points line up within 10 points of each other. In addition to the daily, weekly, and monthly pivots I will identify the previous day’s high, previous day’s low, previous day’s 50% range, unfilled gap, value low, value high, and POC (point of control). This gives me a total of 33 price levels. What I am looking for is any of these pivots to line up with each other and create a cluster zone. Let’s take a look at the chart posted below. On August 21st, we have the following: High: 11418 Low: 11342 Midpoint between daily pivot and R1: 11413 Daily Pivot: 11389 Value High: 11381 Previous days 50% range: 11365 S1: 11361 Value Low: 11349 Midpoint between S1 and S2: 11339 By looking at these few numbers, we are able to come up with 4 key cluster zones. The first zone is the cluster between the high at 11418 and midpoint at 11413. This 5 point range is a cluster zone that will act as key resistance/support. The second zone is the cluster between the daily pivot at 11389 and value high at 11381. I will take the midpoint of these two levels at 11385 to base my trading decision. The third zone is the cluster between the previous days 50% range at 11365 and the S1 pivot at 11361. This area will also act as key resistance/support. The fourth zone is the cluster between the low at 11342 and the midpoint at 11339. This will be a key support zone. Of course you will have trading days when only 1 or 2 cluster zones exist. On these days I look to get into a sniper trading mode, looking for one or two good opportunities and focusing on my entry points. Trading setups using these cluster zones goes beyond the scope of this article. I just want to introduce a different method of pivot point analysis. Learn more about this trading method on my website through multimedia presentations and charts. Good luck and best of trading.
-
Hello all to your expert tradestation programmers, I have another request if you are willing to assist me. I would like to see a horizontal line that represents today's pivot. Pivot is (high + low + close)/3. Since price continues to move, this horizontal line should move along with the market. Let's use ES.D as an example. On Friday at 10:30 AM EST, ES closed at 1205.25. At that time, the high of the day was 1210.25 and the low of the day was 1201.25. Therefore, a horizontal line should be drawn at (1210.25 + 1201.25 + 1205.25)/3 ~ = 1205.50. Let's say at 3:30 pm EST. ES closed at 1211. ES has made new high before 3:30 pm at 1212.25. Therefore, that line would have risen throughout the day and draw at (1212.25 + 1201.25 + 1211)/3 ~ = 1208 at 3:30 pm EST. The purpose of this indicator is to indentify the bullishness or the bearishness of the market. In fact, if it's possible, it will be super sweet to paint the horizontal line green when the price is trading above this ever changing pivot line and paint it red when the price is trading below this pivot line. Also for another trading purpose, more often than not, price tends to go up or go down to today's pivot towards the close. If this line is drawn, as a trader, I can look for this trade in the afternoon. Please advise. Thank you. Jumbo
-
Hello, I use the attached MC code to calculate the daily pivot points automatically. This calculation works very well when the session starts and ends in the same day (as an example, for futures on CAC40 (FCE), which opens at 8.00 am and closes at 10.00 pm in the same day). But for futures such as crude oil (CL), which opens at 6.00 pm and closes at 5.15 pm the next day, the automatic pivot points calculation does not work. I would like to request your help to modify this code to take into account futures contracts whose session spreads on two days. Thank you in advance for your help Best regards, Chloe TTM DAILY PIVOTS.pla
-
ABC MidPoints Description of Inputs: UseTime: False = StartTime and EndTime will have no effect and the High and Low will be tracked for the complete day. If true, High and Low will be tracked according to the StartTime/EndTime settings only. StartTime EndTime The study changes the color of the TrendLines/Plots according to the position of the close compared to the TrendLine/Plot. UpColor: is used if Close > TrendLine DnColor: Close < TrendLine MatchColor: Close = TrendLine UseTrendLines: True will use TrendLines instead of Plots and false vice versa PlotSize: The size of the TrendLines/Plots Round2Tick: Study will round the MidPoints to the nearest tick if this input is true. If false the study will not round the MidPoints. ABC MidPoints (MultiCharts).pla ABC_MidPoints.txt
-
Another pivot study post.... i know, but please hear me out. I've seen numerous pivot studies in the archives but they all suffer the same issue that I don't know how to resolve. I'm hoping someone can help me. The day high, low and session close are used in the calculation, and it works fine for ES or YM, as their open and close are in the same day. But I'd like to calculate 24hr pivots based on the session open and close ie. Oil, from yesterday @ 18:00 to today @ 17:15. HighD, LowD and CloseD work on a midnite to midnite basis where as I believe it should be based on the true trading sessions. I use multicharts which is effectively tradestation code, but I have no idea how to handle the overlap of previous day with part of today. I've looked for sample code that tackles the issue indirectly but no luck. Any help would be much appreciated. The code I'm using now is: http://www.traderslaboratory.com/forums/f46/soultraders-pivots-tradestation-488.html And I input the data manually but its tedious after a long day. Otherwise, I like the way this works, though I'd love to have historical plots as well, in a perfect world. Sincerely, T
-
Hello, This indicator is designed to indicate trend and potential support/resistance levels. It originated from my work with the wide range bodies and their translation into tick charts. My theory is that wide range bodies appear in tick charts as consecutive bars higher or lower (3 bars with higher highs, higher lows, etc.). It's not an exactly true translation, but often it works out that way in my experience. Taking the theory one step further, if you have 2 sets of 3 consecutive up or down bars, you normally will have a trend intact. This indicator recognizes (bullish example) when there is three consecutive bars setting higher highs and higher lows. Then it looks for the occurrence to happen once again and sets a dotted line where the pivot was that started the move. New lines will appear as the trend progresses and new legs appear. These lines are areas of support within the trend. If price begins to run into the lines, then you have likely run into a range and should look for range trades as opposed to continuation trades. Once the range fails you get flat until new trend bars are established (this is beacuse the range may just expand to shake more people out). I am posting this for feedback. Since we each have a diverse approach to trading I would be interested to see if anyone finds this analysis fitting into their style well. Getting late, sorry if I don't make much sense here - -here you go. PS> the indicator is designed to run on tick charts, maybe on volume bars as well. 3BAR.ELD
-
I wanted to look at the historical track record of the Floor Pivot points for the ES Futures. Not having enough daily data I used the SPX index instead. I looked the time period from 01/02/1962 to 03/31/2009 which was available from Yahoo as a free download. Dates prior to 1962 did not have the OHLC data. So I looked at a total of 11,892 days. I read in “Trading in the Zone” Casinos have a 4.5% edge at the blackjack table and make millions due to volume of games played. How much of an edge is needed in ES trading using sound Money Management skills to beat the house? The Pivot was defined as the previous days (H+L+C)/3. Standard R1,R2,S1,S2 calculations also The results are as follows: 6,296 days where the open was above the Pivot 5,596 days where the open was below the Pivot 6,288 days closed UP 5,596 days closed DOWN 5,597 days R1 was hit (47%) 1,899 days R2 was hit (16%) 5,170 days S1 was hit (43%) 1,863 days S2 was hit (16%) 924 days R1 and S1 was hit (8%) 2,049 days R1 and S1 NOT hit (Small range day?) (17%) 88 days R2 AND S2 hit (0.7%) 2,826 days opened ABOVE pivot and closed DOWN (51%) 2,770 days opened BELOW pivot and closed UP (49%) 3,518 days opened ABOVE pivot and closed UP (56%) 2,778 days opened BELOW pivot and closed DOWN (44%) 3,735 days opened ABOVE pivot and R1 hit (59%) 1,407 days opened ABOVE pivot and R2 hit (22%) 3,233 days opened BELOW pivot and S1 hit (58%) 1,216 days opened BELOW pivot and S2 hit (22%) 1,947 days opened ABOVE pivot and S1 hit (31%) 1,862 days opened BELOW pivot and R1 hit (33%) So how can we use this information to get a higher probability of trading wins? As a novice I see: If we open above the Pivot there is a 59% change we will hit R1 and a 56% chance we will have a close greater than the high. Setting the stop to S2 and we will be stopped out 22% of the time. However a higher Stop would give us a better reward/Risk Ratio and possibly get us out of a down trend sooner. Setting the stop to S1 and we will have a 31% change of getting stopped out. What other factors can I incorporate to get a higher probablity based on this data?
-
Short video on a short setup using Fibs, Volume Delta, and pivot breaks. For those who are not familiar with volume delta, it is an indicator for TS developed by walterw. It plots the number of contracts bought at the ask versus the number of contracts sold at the bid and plots the greater of the two on top. I have developed a way to visually identify turning points by using a color divergence between the Heikin Ashii Trend and Volume Delta at key price levels. Basically, if the Heikin Ashii Trend indicator is blue but the Volume Delta shows more selleres, a red dot will appear on top of the price bar. Vice versa for red Heikin Ashii bars. CLICK HERE TO VIEW VIDEO Charts created by Tradestation Presented by Traders Laboratory
-
A gap fill will also act as a line of resistance or support. In this example, notice how the gap fill acted as a pivot and prices dropped for a quick 40 points. This is an opening gap setup. You have to be quick to pull the trigger.
