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>At the risk of herecy and the fact that the market will do what the hell it
>pleases, traders still impose a mathmatical matrix on prices that confine
>it for variable lengths of time.
>Pivot Zones are price ranges where an index will find support and resistance.
These zones are thought to be likely turning points. Their worst failure
is if the actual low or high is right between two zones (R 1.5, S 2.5, etc.)
deemed least magnetic. A good test would be a tally of actual reversals,
whether they were closer to a level, or to a midpoint between two levels.
It would provide a rough measure of the tendency, and a way to compare
alternate pivot calculations. If these levels are significant, the actual
pivots should cluster around them to a much greater degree than directly
between them.
Wayne
wlm95@xxxxxxxxxx
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