Jump to content

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.

Minetoo

Which Pivots???

Recommended Posts

There is a lot of discussion on these boards regarding Pivot Point trading and calculation and the purpose of this thread is to come to some definitive conclusions about which Pivot Point calculator and calculation method is best.

There are four (4) PP calculators on this site alone and numerous other ones available elsewhere. My question is which one has the greatest validity? Does the user input session data or 24 hour data? Do you use the close or the settlement price? What about the vaunted and somewhat secretive 'floor trader' pivots? In sum, is there a consensus (and attendant back-testing) as to which numbers and which calculator works best?

Share this post


Link to post
Share on other sites

I personally use the regular ol' classic pivot calculations:

 

R4 = R3 + RANGE (same as: PP + RANGE * 3)

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)

S4 = S3 - RANGE (same as: PP - RANGE * 3)

 

I use only the 9:30-4:15 session for my calculations, and find that they work perfectly well. I also use Market Profile "value area" pivots to trade from.

Share this post


Link to post
Share on other sites

I also prefer the classic pivots but I can't see the logic of using the 0930-1615 hours. It doesn't correspond with YM, DJ or NYSE open hours. I think it's best to use either the official YM high, low and close (or settlement) from the CBOT website or use NYSE hours (0930-1600).

Share this post


Link to post
Share on other sites

ime, with YM - the 24 hr session is superior (price respects these pivots) more than the day session. again, just my experience.

 

i also find that YM more frequently "respects" floor trader pivots vs. ES. i have no idea why

Share this post


Link to post
Share on other sites

That's my experience too dalby. Mypivots.com uses the 24 hour ECBOT session with the 1615 settle price as the close. Using the 1700 close is also an option. Definitely there are sometimes highs and lows in the electronic-only session that you don't want to exclude from your pivot calculations.

Share this post


Link to post
Share on other sites

forgot to mention...

 

i've noticed also that the pivots calculated using the SETTLE price (which is sometimes different than the close) are usually better respected.

Share this post


Link to post
Share on other sites

Hello,

I would like to share my view on pivot point. In Indian Market 2nd Pivot level works better in both side. Yet my logic says one should not work blindly only on pivot levels. I think other parameters,tools will add up confidence.

Say if a got a Fibbonacci level coinciding with any of the pivot levels, in some case it might give me confidence on the level. Thanks & Pls give me your feedback.

 

Anik Mitra

Kolkata,India

Share this post


Link to post
Share on other sites

What Tin Gull said :) traditional ones 'work' just fine. Sometimes on the DAX they are almost magical. Of course at other times when business is slow they are chopped from side to side as stops are run and traders lured in. Actually this can be the case with any well known line or formation, if there is no underlying order flow the fakirs come out in force :)

 

Cheers,

Nick.

Share this post


Link to post
Share on other sites

What about tight, range-bound days (aka 'chop' or 'random rotational days') when the price action doesn't even come near the pivot lines? Are they just discarded on these days and some other strategy employed?

Share this post


Link to post
Share on other sites

At least one pivot usually comes into play but they're not the holy grail. You need to look at other sources of support and resistance like previous highs/lows, fibs and value area levels.

Share this post


Link to post
Share on other sites

I use the values from the daily chart which should be 24h high/low and the settlement price should be the close. So for YM On tradestation I use the data from the previous day on a daily @YM chart to plot on my current intraday chart using my own indicator, which can be downloaded from the indicators forum. I use the 'standard' formula.

 

I use these calculations from experience as they have proven to be the most respected by the market on the YM, ES and DAX.

Share this post


Link to post
Share on other sites
What about tight, range-bound days (aka 'chop' or 'random rotational days') when the price action doesn't even come near the pivot lines? Are they just discarded on these days and some other strategy employed?

 

On those days it will often chop around the PP itself. Halfway points are often respected too. The problem often comes after a wide range day - the lines for the next day are going to be spread out (due to the geomatory behind the maths). After such a day you may get a narrow consolidating day (or 2) in which case you may not hit much.

 

Really there is no substitute for eyballing the charts yourself and seeing what works (or not) for your favourite instrument.

 

Cheers.

Share this post


Link to post
Share on other sites

Greetings.............

while we are on the subject of pivots.........

 

Is it possible to use pivots for longer time frames; over days or weeks.

 

Can I use a monthly bar to calculate the pivots for the following days and weeks of the next month ?

 

Do I use a weekly bar for the following days for the following week ?

 

How would pivots be used for short term (days) or even weeks.

 

I'm not sure how things would scale for different time periods. One day trading day in the stock market contains approximately 78 five minute bars and the pivots for this day are calculated from the previous day with a ratio of 78:1.

 

thanks,

 

//michael

Share this post


Link to post
Share on other sites

yes, many people (myself) included use monthly and weekly pivots.

 

needless to say, these are much wider between levels than daily pivots, and often don't come into play.

 

i love confluence. like when a daily pivot, a weekly pivot, and a market profile level (like a virgin POC) all come together.

Share this post


Link to post
Share on other sites
Guest cooter

I'm not sure how things would scale for different time periods. One day trading day in the stock market contains approximately 78 five minute bars and the pivots for this day are calculated from the previous day with a ratio of 78:1.

 

BTW - Many of us trade the indices using the 9:30-1615 timeframe on the futures contracts, yielding 81 five-minute bars over a 405 minute timeframe.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • NFLX Netflix stock, with a solid top of range breakout, from Stocks to Watch at https://stockconsultant.com/?NFLX  
    • NFLX Netflix stock, with a solid top of range breakout, from Stocks to Watch at https://stockconsultant.com/?NFLX  
    • It depends. If you have lots of money that you can buy a house without a loan and if you don't have any parents to sponsor then it is a good idea. Otherwise it might be a bad idea depending where in Canada you are heading to. I earned a good middle income in my home country and I migrated to Vancouver 5 years ago at the age of 35. I had to start right from the bottom, lowest of the low.. Now i am finally earning a middle income in Canada but I still cannot afford to buy a one bedroom apartment. Having left behind friends, family and home, most of the times I think it is not worth it.   In short, do not migrate if you already have a good life in your home country and you are happy. Only migrate to Canada if you really have to leave your home country say there is a war or something really bad. Discrimination still exists here and its really tough for newcomers unless you are super rich. Good luck. David Chong, Quora  
    • This is bigger than the internet. Bigger than mobile. Bigger than social media.   While everyone was distracted by stock market fluctuations and political theater…   Most people have NO IDEA what just happened last week with ChatGPT.   Their new memory feature allows ChatGPT to remember EVERYTHING about you across all your conversations.   Think about that for a minute...   While most tech companies have been collecting mere breadcrumbs about you - your likes, your clicks, your browsing history - OpenAI is now collecting the most valuable dataset in human history: your complete psychological profile.   This is Zuckerberg x 5,000.   The more you use ChatGPT, the more it understands you, becoming a supercharged reflection of yourself that improves at an exponential rate.   Are you a regular ChatGPT user?   Consider whether it’s time to turn off the “you can train on my information” feature. To prevent your data from being used for training while still using the memory feature:   Disable Model Training: Navigate to Settings > Data Controls. Toggle off "Improve the model for everyone". Manage Memory Settings: Go to Settings > Personalization > Memory. Here, you can: Turn off memory entirely. Delete specific memories. Use Temporary Chat for sessions that won't be saved or used for training. Now the investment implications…   Why This is Bigger Than You Think Consider this: the relationship between humans and ChatGPT is evolving beyond a mere tool.   People are now treating these AI assistants as friends, confidants, and even romantic partners.   I'm not making this up - there are already documented cases of people ending real human relationships to pursue “connections” with their AI companions.   A viral Instagram meme shows a person going through life with a glowing, featureless humanoid figure - representing ChatGPT - as their companion.   The post has over 1.1 million likes and comments like "Bro ChatGPT is like my best friend. Ain't even ashamed to say it" with 25,000 likes.   But here's where things get really interesting for investors and entrepreneurs...   Three Things to Watch For starters, hardware is the next big thing for the big players.   The iPhone form factor is dead.   It hasn't meaningfully changed in nearly a decade. The next evolution in hardware will be designed specifically to interface with these AI companions.   OpenAI is already working on hardware with Johnny Ive, the legendary designer behind the iPhone and iPod. But you can’t ignore Elon Musk’s edge here.   So what does all of this mean for you?   The companies that control the personal AI relationships will be worth trillions. OpenAI and Elon Musk will have the coziest moats. We're witnessing the birth of a new internet - one built on agents that can communicate with each other across platforms. Google's new agent-to-agent protocol allows AI agents to work together without sharing internal memories or tools. The hardware companies that create the perfect interface for these AI companions will dominate the next decade of technology. And almost nobody is talking about what this means.   My prediction? Within five years, most people will have a personal AI that knows them better than anyone else. And they will interact with it in ways that seem foreign today.   (And, yes, it will almost certainly have dystopian elements.)   In the meantime, the biggest gains won’t come from household names. And, right now, James is seeing a prime opportunity to invest in the most under-the-radar plays in AI…   For dirt cheap. By Chris C. Source: https://altucherconfidential.com/posts/use-chatgpt-protect-yourself-now
    • KBH KB Home stock, nice day and rally off the 50.82 support area, from Stocks to Watch at https://stockconsultant.com/?KBH      
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.