sorry the floor traders pivot point yesterdays (h+l+c)/3 = todays pivot point. then apply a 10 period moving average to your chart. when the close of a 5 minute bar and the moving average is above the pivot then buy. The central pivot point (CPP) is the equilibrium point around which trading is expected to occur. The calculation for tomorrowâs CPP is simply the average of todayâs high, low and close. When prices move away from the CPP there are zones of support and resistance that define the expected value area of the market. Because these zones are known, penetration and market moves beyond these support and resistance levels bring new players into the market who give further momentum to the buying or selling pressure. Where C[1] is yesterdayâs closing price, H[1] is yesterdayâs high and L[1] is yesterdayâs low, the central pivot point for today and its support and resistance levels are defined as: Central pivot point P = (H[1] + L[1] + C[1]) / 3
Thanks Pretty simple entry rule but... what about initial stop,profit target,trailing stop ad naus...
sorry but if you look at the first post i made i gave the stop as "for a buy the stop becomes the pivot or slightly less optimize this." so i did include the money management rule. i knew i posted it and it was hard for me to find. i write that way kinda hard to follow. its part of my overall give but not make it too easy approach.
my bad. you write very efficiently. but... the pivot could be pretty far from your entry point. I guess that's why optimization is required. e.g. closer of 10 bar MA or pivot.
Interesting thread. Im discussing a forex system which is very similar to this one in the high frequency scalping thread in the forex trading section.
I like this tread as well!! Only thing is that I am from Norway, so do have a little language problems, especially when you write so efficiently! I am looking for an easy and simple entry system that does not include to many indicators. Something like you discribed earlier! Could you maby post an example on a chart as well??! I did not really understand all that you described. Veggen