ATR and Pivot Points

[earsha]

Whats is ATR?

ATR means Average True Range, will give you some idea of how much the stock price may move in a day between the Low Of Day (LOD), and High Of Day (HOD). If the charts are right as the price is coming up off LOD (or some intraday support near it), you`ll have an idea of how much profit potential there is in trading it to HOD (or some intraday resistance near it).

Pivot Points?

Pivot points are yet another useful tool that can be added to any trader's toolbox.

Here, "S" represents the support levels, "R" the resistance levels and "PP" the pivot point.

Daily Pivot Points will give you intraday supports below the Pivot Point, and intraday resistances above the Pivot Point. These change daily. The Pivot Point represents "neutral" price. If the price drops below PP, then the bias (tendency) will be for the price to drop further. If the price rises above, then the bias (tendency) will be for the price to rise further. In otherwords, the lowest risk for long trades is entering when the trend is turning up off of the PP, or moving up thru R1 towards R2. The lowest risk for shorts is to enter when the trend is turning down from PP, or moving down thru S1 towards S2.


Earsha

[Soultrader]

Very informative and well explained earsha. Im going to be making a table of contents for the forum and will include this post as well.

[earsha]

thankyou soultrader, also i seen your "Pivot Points Calculating methode", very impressive, most of your posts are informative, make this forum a nice one for newbies...thanks again...

Earsha

[Samurai]

Anyone know of a source that provides these ATR figures for Futures markets?

[TinGull]

What charting software are you using Samurai? Usually charting software will have some sort of range indicator.

[Samurai]

	Quote:	TinGull
	What charting software are you using Samurai? Usually charting software will have some sort of range indicator.

Market Delta, but I am very new to it.

[TinGull]

Are you only using Market Delta? Or an InvestorR/T package branded by Market Delta?

[Samurai]

Just MD with E-signal Data Manager. Any guidance is much appreciated. Tks.

[TinGull]

Gotcha in the chat room. Welcome!

[Griesha]

Pivots are great. I have been using them for some time now and have code within eSignal to automatically calculate and plot them from previous day's data.

HOWEVER, these "calculated" pivots often don't align with those that floor traders use (based on the previous day's trading on the FLOOR, not on the electronic market).

In my experience, the usefulness of the floor numbers far exceeds the numbers calculated from electronic trades.

So I have a question. Does anyone know where to find these numbers, before market open, and NOT from a paid site? (These numbers are easily accessible from sites charging $200 -500/month. Often these numbers are more useful than the rest of the "service" being paid for!).

Any help in this area greatfully appreciated.

G.