Pivot Points

Description

This indicator, based on the price zone approach invented by Dr. Bruce Gould, has been honed over the years. In the beginning, the price zones were calculated using the price developments of the last 2-3 years. Nowadays, however, the practical concept of pivot points is taken from the calculation of price zones in the daily chart, using the previous day’s periods as the basis. The goal hereby is to determine price levels that one could use as potential resistance zones (R1..R3) or support zones (S1..S3). The following methods can be used to calculate the indicator: Classic, Floor, Woodie, Camarilla, Fibonacci. The Classic and Floor methods are often wrongly named within literature, which is why in AgenaTrader you will find that the Classic method is labeled as “Floor” and vice versa. The indicator displays the pivot points for intraday charts, and the parameter “ShowPrices” allows you to display the price on the levels. The parameter “DaysBack” allows you to set the number of periods in the past that should be used for the calculation. The line coloring can be defined manually

Interpretation

Traders prefer to sell above the resistance lines 1 & 2 (e.g. to build up short positions), and to start building up tactical long positions at the support lines.

Further information

http://www.finanznachrichten.de/nachrichten-2008-01/9833653-was-sind-pivot-punkte-und-wie-kann-ich-sie-handeln-005.htm

http://www.aktienboard.com/forum/f38/7-kapitel-pivot-points-t36428/

http://www.forexschule.com/schule/wie-man-mit-hilfe-von-pivot-punkten-handelt-50

Usage

PivotPoints()
PivotPoints(PivotPointsMode mode)
PivotPoints(PivotPointsMode mode, int LineWidth, bool ShowPrices, int DaysBack, Color RColor, Color PPColor, Color SColor)
PivotPoints(IDataSeries inSeries, PivotPointsMode mode, int LineWidth, bool ShowPrices, int DaysBack, Color RColor, Color PPColor, Color SColor)
PivotPoints()[barsAgo]
PivotPoints(PivotPointsMode mode)[barsAgo]
PivotPoints(PivotPointsMode mode, int LineWidth, bool ShowPrices, int DaysBack, Color RColor, Color PPColor, Color SColor)[barsAgo]
PivotPoints(IDataSeries inSeries, PivotPointsMode mode, int LineWidth, bool ShowPrices, int DaysBack, Color RColor, Color PPColor, Color SColor)[barsAgo]

Return value

This class has the following public methods (as data series), which all return double values:

PP, S1, S2, S3, R1, R2 ,R3

Example:

PivotPoints().PP[int barsAgo]
PivotPoints(PivotPointsMode.Classic).S3[int barsAgo]

Parameters

InSeries	Input data series for the indicator
PivotPointsMode	Calculatory method. Default: floor
PivotPointsMode.Classic
PivotPointsMode.Floor
PivotPointsMode.Woodie
PivotPointsMode.Camarilla
PivotPointsMode.Fibonacci
LineWidth	Default: 1
ShowPrices	Shows prices next to the lines. Default:false
DaysBack	The number of historical periods to be included in the display of the pivot lines Default:0
RColor	Resistance line color
PPColor	Pivot line color
SColor	Support line color
Show Regions	Color fill space between lines
Extend Lines to Future	Extend lines to latest data

Visualization

Pivot Points

Example

//Output current pivot point
Print("The floor pivot point is located at: " + PivotPoints()[0]);
//Output first support (S1)
Print("The first pivot support (S1) is at: " + PivotPoints().S1[0]);

Calculation

H=yesterday’s high, L=yesterday’s low, O=yesterday’s open, C=yesterday’s close

Range = H-L

Classic

pp = (H + L + C)/3

r1 = 2*pp - L

s1 = 2*pp - H

r2 = pp - s1 + r1

s2 = pp - r1 + s1

r3 = H + 2*(pp - L)

s3 = L - 2*(H - pp)

Floor

pp = (H + L + C)/3

r1 = 2*pp - L

s1 = 2*pp - H

r2 = pp + Range

s2 = pp - Range

r3 = pp + 2*Range

s3 = pp - 2*Range

Woodie

pp = (H + L + 2*C)/4

r1 = 2*pp - L

s1 = 2*pp - H

r2 = pp + H - L

s2 = pp - H + L

r3 = 0.0

s3 = 0.0

Camarilla

pp = (H + L + C)/3

r1 = C + Range * 1.1 / 12

s1 = C - Range * 1.1 / 12

r2 = C + Range * 1.1 / 6

s2 = C - Range * 1.1 / 6

r3 = C + Range * 1.1 / 4

s3 = C - Range * 1.1 / 4

Fibonacci

pp = (H + L + C)/3

r1 = pp + 0.382 * Range

s1 = pp - 0.382 * Range

r2 = pp + 0.618 * Range

s2 = pp - 0.618 * Range

r3 = pp + 0.764 * Range

s3 = pp - 0.764 * Range