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# Pivot Point Problems

Discussion in 'Technical Analysis' started by cashmoney69, May 4, 2006.

1. ### cashmoney69

http://www.investopedia.com/articles/forex/05/FXpivots.asp

" The textbook calculation for a pivot point is as follows:

Central Pivot Point (P) = (High + Low + Close) / 3

Support and resistance levels are then calculated off of this pivot point using the following formulas:

First level support and resistance:

First Resistance (R1) = (2*P) - Low

First Support (S1) = (2*P) - High

Likewise, the second level of support and resistance is calculated as follows:

Second Resistance (R2) = P + (R1-S1)

Second Support (S2) = P - (R1- S1) "

central point OF WHAT?..the OHLC for the end of the

trading day OR for the end of a particular session ? If they mean

the end of the trading day then here it is, for intel:

open 19.28
high 19.45
low 19.21
close 19.34

(open price not included in below calculation)

central point = 19.33

Ok so here is where I think s/r is for intel on a 4 week

S1 = 18.81

S2 = 19.12

R1 = 19.77

R2 = 19.98

First Resistance (R1) = (2*P) - Low

ok.. 19.77 = 2*19.33 - 19.21 ?

I get 19.77 = 19.45...

I'm not going to bother doing the rest until I know what I'm doing.

can someone help me here?

Thanks

- nathan

2. ### Optionpro007

Nathan,

For futures, is the end of the trading session. I don't trade stocks, but would imagine that after RTH all pm ETH numbers are used in conjunction with next day's RTH HLC levels.

Hope this helps. If you need the formulas for excel let me know.

Cheers !

Sorry,

RTH ?
ETH ?

nathan

5. ### Batterup

http://www.deltat1.com/Education/tools/pivot-calculator/index.htm

Here is what i use for the ES = use the previous days Open, High, low and the close from the PIT SESSION, not the globex times. then calculate the pivot levels for today.

The reason you do not use globex OPEN is because TODAYS open for globex is actually about an half hour away from yesterdays close, so maybe only a tick or 2 away. So the globex open tick had no value to calculate todays pivot points.

In other words just use the pit prices of SP for the o, h, l and close. then apply those pivot points to todays ES starting at 0930Et. Then transpose yourself as a pit trader in Chicago and trade along with the flow of the pit......

6. ### NihabaAshi

I only include the overnight data for Pivot Point and S/R Levels calculation if there was a strong price reaction to a key market event in the overnight trading session.

Traders (especially the pros) after 0930am est just don't forget those types of strong price movements that sometimes occur in the overnight trading session.

Mark