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Patrick,
I was reading something the other day about them.. If in an "uptrend"
what ever that is,, sorry for the amiguity,,, one would consider buying
upon a retracement to say the pivot. Or one could look at it from a nervous
point of view.. take profits at R1 if the spread between the advancing
and declining issues is narrowing from a positive spread..
Or if price gaps up to R2 on the open sell and buy it back at R1
There are all sorts of combinations.
I was rereading Joe Ross's book on Trading The Ross Hook,
in it he describes a couple of tecniques for determining the next day's
range.I think pivots and the s&r levels in conjuction with a probable
range of the day is pretty good information to have in one's arsenal.
Any RT's out
there with accurate Probable Range of Day formula's other than Ross's for
uptrending and downtrending markets?
For instance in congestion JR's formula is as
follows:
(O + H + L + 2(C)) /5 = X
2X - High = Tomorrow's Projected Low
2X - Low = Tomorrow's Projected High
Don Thompson
patrick fernicola wrote:
Here is a pivot point
calculation and I was wondering if anyone is using pivot points and what
has there usefulness been? The pivot
point and its support and resistance pairs are defined as follows:
Pivot point (P) = (H + L + C) / 3
First resistance level (R1) = (2 * P) - L
First support level (S1) = (2 * P) - H
Second resistance level (R2) = P + (R1 - S1)
Second support level (S2) = P - (R1 - S1)
where H, L, C are the previous day's high,
low and close, respectively. PJF
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