Pivot points

Discussion in 'Index Futures' started by michaelday, Oct 9, 2001.

  1. What is the most widely used formula for calculating PP, S1, S2, R1 and R2 in emini trading?

  2. Bob777


    Using previous days high (H), low (L), and close (C):

    Pivot Point = (H+L+C)/3

    R1 = 2P - L

    S1 = 2P - H

    R2 = (P - S1) + R1

    S2 = P - (R1 - S1)
  3. tymjr


    Variation 1:

    PP = (H + L + C)/3
    R1 = (PP*2) - L
    S1 = (PP*2) – H
    R2 = PP + (H - L)
    S2 = PP - (H - L)

    Variation 2 (same as Bob's):

    PP = (H + L + C)/3
    R1 = (PP*2) - L
    S1 = (PP*2) – H
    R2 = (PP -S1) + R1
    S2 = PP - (R1 - S1)

    Variation 3 (courtesy of El Cazador):

    PP = [H + L + C]/3
    R1 = PP + [(H - L)/2]
    S1 = PP - [(H - L)/2]

    Here is yet another variation that is said to help with overnight gaps by weighting the Pivot Point with the current open.

    PP = (H+L+C+Today’s Open)/4

    I have no experience with this, but a trader that I know seems to prefer it to the traditional formula.

    I don’t use pivots point to trade, hence I have know idea as to the value of these examples.
  4. tymjr

    I'm just not sure which one is used more widely
    Variation 1 or
    Variation 2

    In today's SP emini trading S1 was 1056 and you can see from today's chart that it was a major support level.
  5. tymjr


  6. Thanks tymjr,

    That's an excellent booklet. I think that emini trading due to high efficiency should be kept as simple as possible.
  7. js1257


    tymjr do you know what * stands for? Thanx
  8. tuna


    js *=multiply /=divide
  9. js1257


    How do I go about putting the formulas in excel to calculate them everyday?