zigglewigler said:Faris
Pivots are daily calculations, whatever time frame you are in is irrelevant, the daily pivot will be the same. You can use h+l+c/3 or h+l+c+today's Open/4. The pivot points are very important for SP floor traders, they work them out first thing including second resistance and support.
Pivot=(h=l=c)/3
R1=(Px2)-l
S1=(Px2)-h
R2=P+(R1-S1)
S2=P-(R1-S1)
or
R2=P+(h-l)
S2=P-(h-l)
I only bother with main pivot and watch indices' reaction to it, it is like a light to moths. You can best study its effect on a 60 min chart.
Quick pivot calculations:
http://www.stelaronline.com/resource/pivot.htm
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