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2nd and 3rd Level Pivot Formulas...

Discussion in 'Trading' started by BobbyMurcerFan, Mar 24, 2004.

1. BobbyMurcerFan

I have found a few different versions of the formulas for R2, S2, R3 and S3 here on EliteTrader and other websites. Which formulas do you use?

R2:
CentralPivot + R1 - S1
or
CentralPivot + PDH - PDL

S2:
CentralPivot - R1 + S1
or
CentralPivot - PDH + PDL

R3:
CentralPivot + R2 - S2
or
R2 + PDH - PDL

S3:
CentralPivot - R2 + S2
or
S2 - PDH + PDL

Thanks Very Much!

2. electron

by simple algebraic operations whether these formulas are identical or not. They just might be... But, since I have a Ph.D. in math, I won't lower myself to do this...

3. funky

you are asking the wrong question. HOW do you find out what formula is used? come on now....we're not gonna do ALL of the work for you.....pick a market and test it!

4. BobbyMurcerFan

No they are not the same, algegraically or emperically.

5. BobbyMurcerFan

Sorry, with all due respect, I don't think asking a question about 2nd and 3rd level pivots formulas is asking anyone to do ALL my work for me.

6. funky

the point is: what does it matter WHO uses what? your p&l only cares which one works best for whatever market you are trying to trade.... not rocket science! now shake your head up and down and say "yes funky, you are correct -- i'm going to go test out which one works best and use that one"

7. ArchAngel

You're worrying about something that's so old and now mostly used by retail traders who believe the baloney about the magic numbers being one of the floor trader's great "secrets" - maybe 30 years ago.

Which formula you use doesn't matter - they'll all perform only marginally.

8. Ebo

I find the best use for Pivot Points is wiping my ass with them after I write them down on a nice soft roll of Charmin.
A three wiper or higher I am a better seller.
Less than 2 wipes and I am a better buyer.
Works every time.

9. funky

hey now the guy might find a use for it...just cause YOU couldn't find a way to use it doesn't mean there is no use for it anywhere..... come on archy!

10. funky

lol that was actually funny

#10     Mar 24, 2004
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