Has anyone heard this definition of 'pivot'? Any low of a candle which is sandwiched between higher lows on each side. All three have to be completed candles, of course. And the reverse would also be a pivot. So, any high of a candle which is sandwiched between two completed candles which both have lower highs. So anyone heard this definition? Just curious. If you've heard of it, where and how do you use it? Thanks.
That definition is from Tom DeMark if I recall well. He would rank them depending on how many bars were higher/lower on each side of the pivot bar. It is about detecting turning points, changes of trend.
ok, thanks. Also, I was curious, what is the 'official' definition of an inside bar? Does the high/low have be inside (that is, its high can't be higher than previous candle's and its low can't be lower than previous candle's) or is it only the body that has to be inside? I'm asking because I've always thought of it as the first defn but lately I heard about someone using the latter one.
Babak...... I believe it goes like this: In Western technical analysis an inside day = A bar where the high is lower than the previous bar's high. And the low is higher than the previous bar's low. In Candlestick analysis an inside day would be called a harami. That is, the second candle's real body is completely within the first candle's real body. However, the shadows may extend above or below the first candle's high or low.