PIVOT calculator question

FTSEBOY

Member
Hi all,
I noticed on the www.eurostoxx.co.uk webiste that Helen uses a pivot calculator. The data to be put in are the high/low and closes from the day before. I tried it out this morning based upon the FTSE cash market and remarkably the R2 figure was about 4000-00. Looking at the FTSE cash today it peaked at just over 4000-00. Is this some king of crystal ball or what? Does anyone actively use a pivot table and if so does anyone know how these figures are determined?
FTSEBOY
PS Please disregard my naivity as I am new to the game
 

waytogo

Active member
Hi

I dont use pivot points myself, although did go through a phase some time ago of working them out every day, and yes they do work at least some of the time.

Also, dont forget that round numbers will also give major support/resistance, often only for psychological reasons, so 4000 was always going to be a sticking point for the FTSE this morning, and it will need some good news to head up through it significantly.

Waytogo
 
There are different ways of working out pivot points, if they are your particular 'thing'. The most common is High + Low + Close divided by 3 = the central pivot point.

However, for stocks which regularly gap up or down then some people use High + Low + Close + current day's Open divided by 4.

There are then R1 and S1 (resistance point 1 and support point 1), and R2 and R3, and there are also intermediate points between each of these, such as R0.5 and R1.5 etc.

They're supposedly used by floor traders in the pit who traditionally wrote the 5 points on the backs of their hands or memorised them. Some folks set great store by them, others wouldn't touch them with a bargepole - like every aspect of trading, it's horses for courses.

That's the basics - for the basic formula:
http://www.snapdragon.co.uk/resource/talk/talk8.htm
http://www.linnsoft.com/tour/techind/pp.htm
 

Bigbusiness

Experienced member
Excel pivot point calculator

I have attached an excel pivot point calculator I have been working on. I am not that good with excel so if there are any experts out there I am sure they could improve it.

I enter the Dow data in to the OHLC boxes and drag down the Pivot point first then the S3,S2,S1, R1, R2, R3 boxes and the moving average boxes. I also worked out the weekly pivots for the last two weeks.

Hoped to have a few charts but haven't worked out how to make them yet.
 

Attachments

  • dow pivot.xls
    48 KB · Views: 582

Bigbusiness

Experienced member
Here is the dow today with the pivot lines. If only it worked this well every day!
 

Attachments

  • pivot 6.5.gif
    pivot 6.5.gif
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zambuck

Experienced member
Re: Excel pivot point calculator

Bigbusiness said:
I have attached an excel pivot point calculator I have been working on. I am not that good with excel so if there are any experts out there I am sure they could improve it.

I enter the Dow data in to the OHLC boxes and drag down the Pivot point first then the S3,S2,S1, R1, R2, R3 boxes and the moving average boxes. I also worked out the weekly pivots for the last two weeks.

Hoped to have a few charts but haven't worked out how to make them yet.

I did something similar for Metastock as it is possible to DDE link data and chart it....however I found a ready made pivot point calculator on metastock user site which I now drop on the charts...

Have you seen an article by Jayanthi...editor of TASC she has another type of pivot point formulae which she has used sucessfully....
 
Pivot

zambuck said:
...Yes BB

It is the same one...although I have a PDF file of that article....

Do you want me to e mail it to you..????
hello dear i am also a interested in pivot levels.. i am mba student. i am not so rich person so can possible to send me that pdf file of that article....................
 
 
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