YM, ES seem to be stuck inside their previous day closing range. The top of which happens to be their pivot. Nq found R in an area that I did not have as an important level So far I've taken no action, I'm not too confident with my IB connection today, we'll see what may be offered latter today.
Tried a short, but it didn't go anywhere. May be one of those days. The R for the NQ was at the ES/YM PDCs, which coincided with the PP. This was a good example of taking a cue off another index.
Thanks, I was just getting ready to ask about this. I'm still trying to work out the timing on when to take a cue of the other index's, so I'm thinking that when NQ is in no mans land, at a time when ES and YM are relatively symmetrical, thats the time to look at the 2 to 1 thing, and go with what the majority is doing. For some reason,I keep losing my IB data feed today.
I suppose you could call this "advanced". But you can do a manual backtest to give yourself an idea of what to look for. If the S/R is good, you at least ought to be able to get to BE, but the reward is often much greater than that. The difficulty here, of course, is that the NQ is in such a very different chart pattern than the other two, so it's a bit of a juggle. You opened this journal at just the right time.
Well, I've seen different variations and calculations for computing s/r and intermediary levels between them but I can't really speak intelligently about those other variations. In short, I've grown accustom to my formula and calculations and found them to be reliable.
Here's the PP formulas from Linnsoft's site. These seem to be the most accepted ones from the previous forums here on ET. http://www.linnsoft.com/tour/techind/pp.htm jd
The formulas you provide for S3 and R3 provide the same results as mine, though my formulas are stated much more simply. And they help avoid the large gaps between S2/R2 and S4/R4 (what Awash calls S3/R3). Whatever floats one's boat
I'm going to research my S3/R3 formulas and figure out why I have a large gap between 2 & 3. Thanks for the insight!
It's like you've been saying in this thread and others, (which I've been learning quite a bit from....thanks) the lines are just lines. What we need to do is find a reason for using them at their respective levels, in other words find the basis for why we give them weight. Otherwise they are just lines on a chart. jd
I might also mention that the main reason I don't get too involved with pivot numbers beyond S2/R2 is that by the time you're past that, you're usually into much more important S/R, so the pivot levels just aren't all that critical. In other words, I have no idea whether price turns because of the obvious S/R or because of the pivot number. I'm assuming the former, since by the time price gets to what would be S3 or S4, for example, it's probably "oversold", in which case there are other ingredients being added to the mix.