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Try TAS&C Vol.12 Ch.8 p.318, Aug. 1994, 'The Pivot Point for Trading' by
William Greenspan.
All H,L,C values are from the previous bar and the levels are applied to
the current bar.
The pivot point: P = (H + L + C) / 3.
Resistance level 1: R1 = P * 2 - L.
Support level 1: S1 = P * 2 - H.
Resistance Level 2: R2 = (P - S1) + R1.
Support level 2: S2 = P - (R1 - S1).
An illustration shows the support and resistance levels plotted as bands
and the pivot points as dots. Said to be used by floor traders of
commodities and futures.
Can't offer any experience of the technique - I just remembered having
seen the article recently.
HHP
================
Macolm Walsh wrote:
>
> List;
> I have been reading "Trading Systems" by Krutsinger.
> Mention is made of the a pivot formula. A Trade Station
> code is given which involves the average of the high,
> low and close plus some other arithmetic.
>
> I cannot find a reference anywhere that can explain this
> formula or what it's good for.
>
> I am hoping that there is someone who is familiar with
> this formula and could give me a brief explanation or
> a reference.
>
> Thanks
>
> Malcolm
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