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Papa Lazarou

Pivot Points on Continuation Charts

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Hi all,

 

I am programming my trading system to plot pivot points. However, I am not sure what to do on the day / week that rollover occurs?

 

When April Rolls into May on a continuation chart, do you think I should be plotting:

 

April's previous day pivot or May's previous day pivot?

Previous weeks pivot from April data, or previous weeks pivot from May data?

 

Thanks

Papa.

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Hi,

 

I would argue that pivot points are self fulfilling? The exact numbers are relevent. I would have assumed that most people will either be looking at either April or May values to calcuate them, and not a combined 'equalized' value of the two?

 

Lets say we use a continuation chart that has flipped from April to May today, then do you think the daily pivot points should be calculated from yesterdays April HLC/3, or May HLC/3?

The same question to be asked on the weekly chart. Do we look at the last week's candle for April or for May when performing these calculations?

 

Thanks

Papa.

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If trading I am OJ and AAPL splits 2 for 1 should I what to do? Stoploss is a my locked formula open that I can not but tell I am it scaled APPL the closing price.

 

Please hurry. I trading desk have on the line.

 

Sir, you have 2 only the choice. Send $$$$$$$ for update special black box or break our code which is not happen because it uses proprietary date lock expires when splits the APPL.

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If trading I am OJ and AAPL splits 2 for 1 should I what to do? Stoploss is a my locked formula open that I can not but tell I am it scaled APPL the closing price.

 

Please hurry. I trading desk have on the line.

 

Wrong thread I think?!?

 

If anyone else has any input on my question that would be good. Thanks

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Hi all,

 

I am programming my trading system to plot pivot points. However, I am not sure what to do on the day / week that rollover occurs?

 

When April Rolls into May on a continuation chart, do you think I should be plotting:

 

April's previous day pivot or May's previous day pivot?

Previous weeks pivot from April data, or previous weeks pivot from May data?

 

Thanks

Papa.

 

Do you wanna buy some pivots, Dave? :)

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Yes you need inputs: That will solve this because it will scale to the contract you're trading. Throw away global variables from other charts not scaled to the chart you are trading. I saw a thread where some guy programs cheap (like $25) but I do not know if his friend who write the code for him can code CQG.

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If trading I am OJ and AAPL splits 2 for 1 should I what to do? Stoploss is a my locked formula open that I can not but tell I am it scaled APPL the closing price.

 

Please hurry. I trading desk have on the line.

 

If you're trading Orange Juice and Apple splits 2 for 1 . . . then you got yourself a nice fruit smoothie there, Onesmith!

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I answered your question correctly in my first post to this thread. My an silly ary posts convey that same message. What happens when you format an indicators scale to no axis or a different axis relative to the underlying symbol?

 

If all the code that calculates the pivot is contained in a single chart then the result will be correct. Calculate it. You have the formula. Don't use anything other than the underlying symbol.

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Completely hi jacked my thread and given no help whatsoever!!. You two must be local people. :)

 

I'll leave you guys to chat about smoothies and prop pivots and seek help on a different forum!

 

Sorry - didn't mean to derail the thread - was just in a silly mood! :)

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When April Rolls into May on a continuation chart, do you think I should be plotting:

 

April's previous day pivot or May's previous day pivot?

Previous weeks pivot from April data, or previous weeks pivot from May data?

 

A little background first. There are two main ways that most traders display a futures contract:

 

(1) they "glue" the spliced months together, and then back-adjust each month to eliminate the rollover gaps (NT, for example, does this)

(2) they use the continuous contract

 

Neither is correct or incorrect. It's simply different ways to display the data. Only a spot cash market chart which has no rollovers will be free of this question.

 

So the answer to your question is: there is no correct method. The answer for what I, personally, would do, is: use the prior day as it appears on your chart, whether it's back-adjusted or the continuous contract.

 

For example: Imagine rollover occurs from April to May on Thursday the 8th. If you are back-adjusting prior contracts (method 1 above), then Wednesday the 7th will be "shifted," and these "shifted" values (that actually traded on the April contract ) as it appears on the rolled May contract should be used. In other words, don't use the data from the 7th as it traded on the May contract, but rather the shifted values from the April contract.

 

If you have a continuous contract, you will want to use whatever values are given for the HLC on the 7th that your data provider sends to you.

 

If you understand that:

 

(1) futures contracts can be viewed differently depending on (a) data provider and (b) method of contruction

(2) pivot points are not rocket science

 

Then you will realize it's not worth it to obsess over the precision of one or two days every month/quarter on rollover.

 

Another variable is the closing value used... some traders use the settlement price, and some use the last trade price. I use settlement because it represents the actual closing value at the exchange used for margin calculations and other things. Unfortunately many traders do not even know the difference, and do not know how settlement is calculated for their contract. It can make a difference on an instrument like ES, but on a contract like CL it often varies a lot, as settlement is around 2:30 (though not the last trade at 2:30), but the session ends at 5:15.

 

So, with the myriad of different ways to calculate the pivot and display the contract in the first place, the precision you seek on rollover day will not be relevant as the underlying data are not the same on everyone's computers.

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I would like to respond to the original question.

 

I am also making a note in my Google Calendar to return to this post exactly 1 year from today - 03/24/13 @ 7:34PM PDT, and see how many people are still deeply disturbed by my answer and still arguing the point in vain.

 

So, with that out of the way, here we go -

 

"It doesn't matter."

 

You're welcome.

 

D

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I would like to respond to the original question.

 

I am also making a note in my Google Calendar to return to this post exactly 1 year from today - 03/24/13 @ 7:34PM PDT, and see how many people are still deeply disturbed by my answer and still arguing the point in vain.

 

So, with that out of the way, here we go -

 

"It doesn't matter."

 

You're welcome.

 

D

 

Is that 'it doesn't matter because it won't work', or 'it doesn't matter because it will work either way'?

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I would like to respond to the original question.

 

I am also making a note in my Google Calendar to return to this post exactly 1 year from today - 03/24/13 @ 7:34PM PDT, and see how many people are still deeply disturbed by my answer and still arguing the point in vain.

 

So, with that out of the way, here we go -

 

"It doesn't matter."

 

You're welcome.

 

D

 

Perhaps you put undue value on your rather common and somewhat vague (and thus unhelpful to the matter at hand) opinion--I doubt as if many will fiercely debate it, but if they do and that makes you feel more important next March, then bully for you!

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