Pivot Points Vs Close -- Which is More Descriptive of a Trend?

[fgsfds 10]

I want to look at the general direction of a trend over longer time frames (weeks or months). I'll be doing a linear regression of the historical price quotes to get a simple idea of what direction the stock price traveled in, and how strongly. To do that, is it better to use the daily close prices, as is customary, or maybe the weekly close price? And is there a reason to think that pivot points are more or less descriptive than using the close?

[joshdance 10]

I want to look at the general direction of a trend over longer time frames (weeks or months). I'll be doing a linear regression of the historical price quotes to get a simple idea of what direction the stock price traveled in, and how strongly. To do that, is it better to use the daily close prices, as is customary, or maybe the weekly close price? And is there a reason to think that pivot points are more or less descriptive than using the close?

 

If the pivot is calculated (H+L+C)/3 as is usual, think of the pivot as a "close-weighted median." The pivot takes the entire day's range into account (H and L), and adds a weighting to the close.

 

Using the close by itself ignores the range of the day and looks only at where the market finished.

 

Over the course of several weeks or months, either will probably not yield too different results, as either value will still follow the market's general direction and both values will be inside each day's range.

[Obsidian 10]

I would prefer close (weekly) but I don't think you would get a very different result as well...