I don't believe in pivots. I want to know who agrees with me in using the following formula (or something similar) to find supports and resistances for intraday trading of any major CME future - long near support, short near resistance. Ingredients: Today's High and Low: H, L. Yesterday's High and Low: H(1), L(1) Day Before Yesterday's High and Low: H(2), L(2) Future's average daily range for last 12 months (High - Low): Range Resistance = the highest between H, H(1), H(2) as long as H(1) and H(2) are closer to H than Range*0.25 Support = the lowest between L, L(1), L(2) as long as L(1) and L(2) are closer to L than Range*0.25 Another rule is that you get all these values at 10 AM EST and they are final. Of course you cannot keep on updating H and L and the day evolves, or you won't have any SR level to start trading from, because it would keep on moving forever. What do you think? Any suggestions? Does anyone agree on how I find them and use them?
Make sure you are standing on a pedestrian crossing if you don't know what people are driving at. Just kidding. My license has expired years ago, so I am not driving at anything. I didn't answer any of my own questions. My questions are near these symbols: "?". I want to know if people care about Support and Resistance, if they use it, how they obtain it (what formulas), what they think of how I calculate it. This is my question, even though in this case I didn't use the "?" symbol.
I use s/r zones and they are derived from the following: * WRB (wide range bodies) in reaction to a key economic report release or release of a regular schedule market event. * Candlestick lines such as Long Shadows that were involved in a swing point. * Prior pattern signals that were involved in a swing point Simply, no forumla nor voodoo needed. I'm just using recent past info where the markets moved strongly. Been doing this for +15 years. Mark
Now I see what the misunderstanding was coming from, also as far as the second post. Why are you both taking for granted that Pivots are the only kind of Support and Resistance? As I explain with my formula, I believe in Support and Resistance, and I get the values from Highs and Lows, but I don't believe in the Pivot formula, and that is why I wrote that premise, "I don't believe in pivots". But I do believe in Support and Resistance, and the rest of the post is quite clear about it. But I guess reading my whole post was too tiring. Thanks to NihabaAshi for reading the whole post, understanding it, and sharing his method for deriving S/R, which is also alternative to pivots by the way.