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Patrick,
My experience has been that by the time you experience a meaningful %
retracement, you have enough bars to identify a pivot point. At that point,
though, you have two choices to make. Let's take the long side (obviously,
the short side is symmetrical).
By the time you know you have a pivot high of strength two, for example, you
are retraced from that high. You can either enter on some sort of breakout
of that pivot, or you can be more aggressive and enter on the continuation
of the trend.
The continuation of the trend can be determined either by taking out the
high of the previous bar, or by a very fast MA (1,2 , or 3 bar) turning back
to long (a 1 bar MA is just saying that the close is higher than the
previous close).
I hope this helps.
Neil
| -----Original Message-----
| From: Patrick [mailto:patrick@xxxxxxxxxxxxxxxxx]
| Sent: Monday, October 19, 1998 10:09 AM
| To: Omega List
| Subject: Pivot Indicator
|
|
| Dear List,
|
|
| Has anyone seen an indicator for finding swing highs and
| lows based on
| price instead of time? The standard EasyLanguage way to
| find a swing
| pivot is to wait until a specified number of bars have
| formed on each
| side of the pivot. This simply is not effective when the
| market makes a
| quick spike top or bottom. I believe a better answer is a pivot
| indicator based on percent retracement. Has anyone else
| worked on this
| idea?
|
|
|
| Regards
| Patrick.
|
|
|