Pivot Point Formulas

[Kiwi]

What always worried me about pivots is that every set I used (floor, woodies, camarillo, etc etc) seemed to work some of the time. So in the end I just used prior swing highs and lows and highs of today and yesterday.

[cooter]

	Quote:	Soultrader
	Different types of pivot point formulas. Simply divide the pivots by 2 to find the midpoints.

I tried that, and it didn't work. You might want to update the instructions to read something like:

"Simply divide the sum of two adjacent pivots by 2 to find the midpoints between them."

Guess I'm too literal or something... :rolleyes:

[cooter]

	Quote:	Soultrader
	Woodie Pivot Points PP = (HIGH + LOW + CLOSE) / 3

Also, I'm not sure of your source for these pivots, but this one seems to have an error.

Woodie calculates the pivot point himself as:

PP = (HIGH + LOW + OPEN + OPEN) / 4 using OPEN = TODAY'S OPEN, and yesterday's HIGH and LOW

You can verify this at Woodies CCI Club .

[waveslider]

My opinion is that the POC and VPOC are much more powerful than static pivot point formulas.. These represent true "price magnets" within the market. However I don't use any kind of strategy fading the pivots.
I DO use them to establish trend direction for the day, sort of as a filter.
So if close is above the 15 minute range and PP is within the range or below this 15 minute range, bias is up.

[waveslider]

I dont' trade stocks anymore, but the LSS method of generating daily range is very accurate in many cases.. stock traders would do well to program that. It was George Angel's work I think... search for LSS method. PM for tradestation code..

[mw_401]

The original msg:
Classic Formula

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)

But I have another site telling me:
Classic Formula

R3 = R1 + RANGE
R2 = PP + RANGE
R1 = (2 * PP) - LOW
PP = (HIGH + LOW + CLOSE) / 3
S1 = (2 * PP) - HIGH
S2 = PP - RANGE
S3 = S1 - RANGE

Can anyone tell me the difference? (R3 and S3) Or if one is better than the other?

[cooter]

One is the 3rd level of RESISTANCE (above the Pivot Point), the other is the 3rd level of SUPPORT (below the Pivot Point).

As for the difference between the two R3s and two S3s - which I think you are asking - just use basic math to figure it out.

[Soultrader]

	Quote:	cooter
	Also, I'm not sure of your source for these pivots, but this one seems to have an error. Woodie calculates the pivot point himself as: PP = (HIGH + LOW + OPEN + OPEN) / 4 using OPEN = TODAY'S OPEN, and yesterday's HIGH and LOW You can verify this at Woodies CCI Club .

Thanks cooter, I changed the formulas and updated the pivot calculator accordingly.

[Vercingetorix]

For futures like the s&p 500 e-mini what trading hours do you use? Do you use the 9:30-4:00 stock market time range or a 24 hour chart?

[Maverick0325]

James,

Once again, love the forum, thanks!

Had a question re: 'floor-trader pivots'

I have seen people use these very effectively and wanted to see if you agree with their effectiveness.

Floor Trader Pivots are calculated similar to the Classic style, however, R2, R3, S2, S3 are different.

Check the link, scroll down all the way to the bottom and see the calculator to see the calculations as well.
http://www.tactrading.com/floor-pivot-trading.htm

Question:
Have you used them on Equities? Did they hold?
Have you used them on the Nikei, as you like to trade that more often.

Any comments? Suggestions?