At the risk of upsetting people, I have a legitimate question. Why do different people have different pivots for the same index? Is there something subjective here in deriving pivots? Is it like reading charts?
If I'm not mistaken, I believe the "OBJECTIVE" is to explore ways of using "PIVOTS" to greater benefit. Do you use them Ebo? If so, how? if not, why not?
I use them as reference points of "potential" Resistance/Support levels. I am using them in conjunction with several other technical indicators. If R1 or S1 is violated they often become the opposite indicator. You will see these levels get tested several times before they are pierced. On lower range days Pivot Points are almost useless. On an 8-12 point range day you would be surprised how significant these levels are. I trade SPY and QQQ as well as ES and NQ. Pivot Points are merely guidelines. ebo
I'm curious how other traders view these potential s/r areas. If the price is moving up to a resistance area, do you take a position before price gets there? and then observe, to decide if the r is going to hold or not? Or wait until price gets there, and reacts a certain way, before you enter?
(H+L+C)/3 (H+L+O)/3 (H+L+C+O)/4 (H+L+C+C)/4 (H+L+O+O)/4 (H+L)/2 (H+C)/2 (L+C)/2 this is different ways pivots are calculated by Ensign. now I have a legitimate question. T-REX, why did you change your handle for this thread?
If the volume is increasing as the price moves closer to the resistance or support level this signals to me that the level MAY be pierced, depending on the strength of the volume. However unless there is rapid movement in that direction, I will wait until the level is pierced and confirmed. If the volume is weak, any piercing may just be a fake out before reversal. Having just started reading this thread today (and linked to earlier posts) I haven't started charting the S1, S2 or R1, R2. However I pay close attention to levels of resistance and support throughout the day. Together with the volume, it lets me know if the bears are napping and bulls charging or if the bears have come out to feed and the bulls are taking a siesta. I trade the mini s&p's so sometimes my previously charted resistance and support levels are useless.
The ES has two sets of numbers from the previous day's trading that people use to calculate the pivots. Some people use the "all session" numbers, that is, the H/L/C from the evening, overnight in addition to the regular day session. Other people use the H/L/C just from the regular day session. This will cause the pivots to be in either exactly the same spots (if the overnight session didn't have much range) or slightly different, as they were today. From the previous posts it looks to me like DB uses the day session numbers and ERIERAMBLER used the all session numbers. As I said, today's pivots were different from each other, but over the last month, they have varied very little between the two sets of calculations. I've put up two charts with the different numbers up for a month or so, a few months back. The result was, you can use either numbers. It looks like an equal number of traders are using one or the other. In other words, there doesn't seem to be a consensus as to which numbers everybody should use. For me, after my testing, I've decided to use the all session numbers and leave it at that. Hope this helps. jd
Where did you put them up? Do you use a plug in to do it automatically on the chart or calculate and draw lines?
Someone earlier in another thread put me on to this site for pivots. Here it is http://66.165.77.144/index.cfm?Showtemp=s/PivotsTable.cfm
If anyone is interested in pursuing this further, the sixth post has a link to the previous thread, which contains a number of links to aids for calculating pivot levels. It was not my intention to start over. Since over a thousand members downloaded funky's spreadsheet, I assumed there would be more than casual interest in the subject. If that's not the case, let the thread sink.