mkpkelly replies to: Pivot Trading

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{quote} Thanks for your response.

Pivot Points.

The mathematical calculation of various support and resistance levels, based on the high, the low and the closing prices of the previous period.

UNLESS WE ALL USE THE SAME BROKER –
PP VALUES WILL BE DIFFERENT ACROSS DIFFERENT BROKERS BASED ON YOUR BROKER HIGH, LOW & CLOSE.

Calculation:
Daily PPs are usually calculated based on the New York closing time, i.e. 16.00 EST (22.00 CEST).

Fibonacci PPs: Fibonacci Pivot Points are an extension of the standard PPs where Fibonacci multiples of the high-low differential are considered to form various support (S) and resistance (R) levels. You can calculate the Fibonacci PPs in the following way:

  1. Pivot Point (PP) = (High + Low + Close)/3
  2. Support 1 (S1) = P – {.382 * (High – Low)}
  3. Support 2 (S2) = P – {.618 * (High – Low)}
  4. Support 3 (S3) = P – {1 * (High – Low)}
  5. Resistance 1 (R1) = P + {.382 * (High – Low)}
  6. Resistance 2 (R2) = P + {.618 * (High – Low)}
  7. Resistance 3 (R3) = P + {1 * (High – Low)

Concluding Remarks
Contrary to the popular perception, pivot points don’t only calculate various support and resistance levels, but also offer some valuable trading strategies.

“Look left, structure leaves clues…”

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