Pivot Points

Last modified

Pivot Points

The Pivot Point Indicator is part of the Trend Group and provides simple and quick indication of pivot point levels as well as support and resistance levels.

It is based on the simple calculations made on the fly by Futures Market floor traders to quickly estimate support or resistance levels and pivot points.

Calculation

The formula first calculates a the Pivot Points Mid line, then calculates a distance from that line to the Upper and Lower resistance/support lines:

pivpointformula.png

Once these two lines are calculated, they can be used to calculate the +/– 50% and 200% lines:

pivpointcalcs.png

Plot

Once calculated, the lines are plotted as horizontal lines in the subsequent interval on the price chart.

The display of each line can be turned on or off, in the following example only the Mid Line and Upper and Lower Lines are displayed:

indicpivotpnt.gif

The dotted Mid Line is the Pivot Point level which if crossed may indicate a change in direction.

The Upper or Lower lines, calculated using the range of the previous interval, provide support or resistance lines. If they are strongly crossed, it may be a confirmation of a change in direction.

Display Settings

The Pivot Point indicator has a four tabbed page dialog box.

Parameters

The only parameter to be set is the Time Frame, or interval, over which the Pivot Point lines are plotted.

The default is Weekly.

Users can choose between Daily, Weekly, Monthly, Quarterly and Yearly.

Plots

The Plots for all seven lines can be individually set:

indicpivotpntprops.png

Select each line from the drop down menu and use the Color, Line Type and Weighting commands to define its individual display.

Hide/Show

Un-check the Visible check box to hide the individual line.

Scale Settings/Appearance

The controls in these two tabbed pages are common to many indicators and do not affect the calculation of the Pivot Point lines.

For more information, go to the Common Indicator Properties topic.

Page statistics
737 view(s) and 3 edit(s)
Social share
Share this page?

Tags

This page has no classifications.

Comments

You must to post a comment.

Attachments