pivot point calculation

[locle]

what is the correct time to calculate the pivot point

5PM EST

or

Midnight EST

thanks

[William1713006271]

Re: pivot point calculation

 

There is no right or wrong.

 

5 PM is the close of US market and the start of Asia market.

Midnight EST is the start of London market.

The different in them is Asian market, where prices moves in small range. So although it will be different in pivot, both will somewhat near most of the time.

 

I myself stick with my broker. Don't really pay attention about the time coz I don't use pivot. :P

 

Boris & Kathy use 5PM though. They said, it's better coz the busy markets (eu,gb,us) are basically closing and the slow market is starting. So, they like the daily candle to close at 5PM

 

Well, it's up to you.

 

Regards,

[locle]

Re: pivot point calculation

 

thank you very much William

can you please tell the reason that you are not use pivot point for your trading toolbox, I just want to learn from you, for myself I notice for a while that price below the center pivot tend to go up and price above the center pivot tend to go down, another world, if the price trade below the center pivot I will look for long only, if the price trade above the center pivot I will look for short only. Am I correct? I just want to learn from you

thanks

 

here my trading strategy

I set both MACD 12,26,9 at 60M and 240M on the 15M chart

daily pivot

long

both macd positive price move up from (s1 s2 s3 )below center pivot

short

both macd negative price move down from (r1 r2 r3)above center pivot

[William1713006271]

Re: pivot point calculation

 

:D

 

It's just me. Even though I understand the concept about pivot, piv fib, s&r, but I don't seem to be able to use it to trade. I can't react if the price is stalled or piercing the lines. It's just me, an idiot.

 

I use a modified nina most of time on m30. iGor SDL modified on M15. Kathy's MAMA-CD on H1 (temporarily, I can't seem to find a good one on H1). Bielcomp's Rainbow MA on H4. Basically I love Moving Averages and only use them on different TF with basically 50 and 100 periods' setting.

 

Seems a lot and confusing huh :D Well, the H4 is for trend and feeling of the market. M30 is the main. M15 for entry and trail stop. H1 is currently only acting as beautiful ornament :D

 

However, my most successful trades are based on rectangle break out. Such as today I put straddle at 1.3510 and 1.3580. The 1.3580 got hit and within an hour I exited around 50 pips because of the shooting star candle formation on M30 (my main TF). Small win, but it's a win a money i'll accept anytime. :D

 

How to identify the break out? Zoom in from H4 to M15. H4 first and move down to M15. As you can see there are practically 3 consecutive bars of ranging price on H4, that's practically 12 hours. Market is indecisive for 12 hours. Just put the straddle and most of the time, it's a high probability trade except you encounter high volatility news.

 

Regards,

[William1713006271]

Re: pivot point calculation

 

One more thing.

 

If you like MACD, perhaps you could try Gerard Apple (the inventor of MACD) settings.

 

He uses on the same TF but with different setting:

6-19-9 (short)

12-26-9 (medium)

19-39-9 (long)

 

His trading system seems like a combi between short macd and long macd. Sometimes short-medium or medium-long. But from the book, most of his charts (stocks, daily chart) use short-long.

 

He also uses ROC for filter. He uses ROC 10 & 21

 

Well, haven't tested it though. I just saved it because these are the setting from the inventor, which I think is very important.

 

Happy testing.

 

Regards,

[myanyx]

Re: pivot point calculation

 

I heard pivot should be counted according to our time not server's time is it true?

[adrian1974]

Re: pivot point calculation

 

Hi Myanyx..

 

Like you and Locle, me too have ever confused with Pivot rules. But according to my experiences along with Pivot, I realized that William is right.

 

There is no right or wrong to what time you chosen. The right thing is always consistent with your basic Time Frame Trading Plan.

For example:

I'm actively trade on NY Session, so I prefer to chose 17:00 NY Market Close as the end of the day. My broker IBFX uses 24:00 GMT as the closing day.

 

So I suggest, first pick your time frame that suit you the best, and try to use consistent time for calculating your pivot. And I'm sure as like me, you will found your own answer about your Pivot time.

 

Hope it will help.

[myanyx]

Re: pivot point calculation

 

Thanks for response adrian,

 

Btw do you use custom indicator or calculate pivot manually and draw the pivot manually on your chart?

 

Thanks

[adrian1974]

Re: pivot point calculation

 

I usually calculate the pivot point manually using the excel spreadsheet. But there are many good pivot indicators which automatically draw the pivot line on MT4.

[matias]

Re: pivot point calculation

 

Hi Myanyx..

 

Like you and Locle, me too have ever confused with Pivot rules. But according to my experiences along with Pivot, I realized that William is right.

 

There is no right or wrong to what time you chosen. The right thing is always consistent with your basic Time Frame Trading Plan.

For example:

I'm actively trade on NY Session, so I prefer to chose 17:00 NY Market Close as the end of the day. My broker IBFX uses 24:00 GMT as the closing day.

 

So I suggest, first pick your time frame that suit you the best, and try to use consistent time for calculating your pivot. And I'm sure as like me, you will found your own answer about your Pivot time.

 

Hope it will help.

 

Hi,

I have one thing to say. Pivot points come from pit markets. That means, stock traders were calculating it in the end of each trading day to have a picture, how could market act the next day. Stocks were centalized places with open time and close time for every single day. Forex market, is however, decentralized, and is traded 24 hours a day. So I don´t understand, where would be the point of using pivot points, if groups of traders calculate these points in different way... Markets are mostly calm during asian hours, but we know, how crazy it sometimes could be...If they do it this way, there´s extremely high probability, that pivots won´t work, because everyone has different pivots. On the other hand, majority of them calculates it at 00:00GMT. And now make a choice... :">

[Neno0102]

Re: pivot point calculation

 

Can you please explain what is ROC ?

Thanks.

[pipsahoy]

Re: pivot point calculation

 

I think locle, try one of the automatic pivot point indicators. I use them on different platforms and am amazed how often price stalls or reverses at main levels.

[conggle]

Re: pivot point calculation

 

do you use custom indicator or calculate pivot manually and draw the pivot manually on your chart?

[echoz]

Re: pivot point calculation

 

What the best pivot calculation for monthly, weekly ?..need to lean swing study on entry base on pivot. :-ss

[Soprano888]

Re: pivot point calculation

 

5 PM is the close of US market and the start of Asia market.

Midnight EST is the start of London market.

[Phoenix1713006089]

Re: pivot point calculation

 

i do not use the standard pivots in forex I use fibopivots

 

Also as mentioned 5PM ESt does work best so set your fibs time offset to the brokers for this time

 

The difference between the traditional Standard Pivots and "FiboPivots" is that the S1, S2, S3, R1, R2, R3 levels with Fibopivots are calculated as offsets from the Pivot line by multiplying the prior day trading range ("R") by Fibonacci numbers. The base Pivot line for both methods is calculated the same. I find that price seems to respect Fibopivot lines in Forex (especially the Yen pairs) moreso than the Standard Pivots. Stock prices seem to more closely respect Standard Pivots. The differences between the two methods can be seen in the following code that calculates both:

 

double R = yesterday_high - yesterday_low;//range

 

FiboPivot_P = (yesterday_high + yesterday_low + yesterday_close)/3;// Standard Pivot

FiboPivot_R3 = FiboPivot_P + (R * 1.000);

FiboPivot_R2 = FiboPivot_P + (R * 0.618);

FiboPivot_R1 = FiboPivot_P + (R * 0.382);

FiboPivot_S1 = FiboPivot_P - (R * 0.382);

FiboPivot_S2 = FiboPivot_P - (R * 0.618);

FiboPivot_S1 = FiboPivot_P - (R * 1.000);

 

StdPivot_P = FiboPivot_P;

StdPivot_R3 = (2 * StdPivot_P) + (yesterday_high - (2 * yesterday_low));

StdPivot_R2 = StdPivot_P + (yesterday_high - yesterday_low);

StdPivot_R1 = (2 * StdPivot_P) - yesterday_low;

StdPivot_S1 = (2 * StdPivot_P) - yesterday_high;

StdPivot_S2 = StdPivot_P - (yesterday_high - yesterday_low);

StdPivot_S1 = (2 * StdPivot_P) - ((2 * yesterday_high) - yesterday_low);

[manganate]

Re: pivot point calculation

 

Here is an online pivot and an online fib calc:

 

 

http://indo-investasi.com/viewtopic.php?p=42665#p42665

 

 

I use 00:00 EST

 

 

Neno,

 

Definition of ROC:

 

The margin between the present price and the one that existed n-time periods ago is indicated by the oscillator called the Rate of Change. ROC increases when the prices trend up whether it declines when they trend down. The scale of the prices changes calls the corresponding ROC change.

 

Overbought or oversold at the short- and long-term periods are perfectly shown by the 10-day ROC. The more security is supposed the higher the ROC is though the ROC decline shows the approaching rally. This indicator should be monitored during the trade in order to find out the start of the market changes. The current trend may go on in case the overbought or oversold indicators take dramatic values and the overbought market may keep its trend for a while as well.

 

Calculation:

 

The ROC (Rate of Change) Indicator is a difference between the price of the current period and the price of the previous period, which is located n periods back from the current one:

 

ROC = Pi - Pi-n,

 

Pi - the price of the current period,

 

Pi-n - the price of the period, which is located n periods back from the current one.

 

As usual, they use the relative (in percentage) value of the velocity of the ROC:

 

ROC% = 100% * (Pi - Pi-n) / Pi-n

 

A 10-day ROC tends to oscillate in a fairly regular cycle. Often, price changes can be anticipated by studying past cycles of the ROC and applying the predicted pattern to the current market.

 

To construct a 10 day rate of change oscillator, the latest closing price is divided by the close 10 days ago:

 

ROC = [ (Close-Close 10 periods ago) / (Close 10 periods ago) ] * 100

 

Taking into consideration the fact whether the As Percent parameter is chosen the Rate of Change can be equal either to the Change in Value function or to the Percent Change in Value function. Despite these variations, the function gives the information of the data volume changes that have happened during the certain period. The easier graphing of the Percent Rate of Change value is reached by its multiplying by 100.

 

The margin between the present price and the one that existed n-time periods ago is indicated by the Price Rate-of-Change. It's values can be represented in points as well as in percents. The same data, though incarnated as a ratio, is shown by the Momentum indicator.

 

The sinusoidal motion of the security prices first rising and then declining is a common fact. The bulls' and bears' resistance causes the expectations changes that are the reason for the wave-like pricing.

 

The ROC measures changes in prices amount during the certain time and represents it as an oscillator showing the cyclical movement. The ROC increases along with the prices uptrending and it decreases when the prices go down. High prices changing gives the according significant ROC changing.

 

Various periods of time are applied for the ROC calculation. They are from the daily volatile chart that is taken of 1 day to the long period lasting up to 200 days and even more. 12-day ROC as well as a 25-day one are the widest spread for trading at short and medium periods. Gerald Appel along with Fred Hitschler have offered these periods in their book, Stock Market Trading Systems.

 

Short- and medium-term oversold or overbought are perfectly shown by the 12-day ROC. The security is supposed to be highly overbought if the ROC is high, whether a rally is expected in case the ROC is low. Though waiting until the market turning up or down is not always the best way out as far as an overbought market keeps its trend for a while. Moreover, high overbought or oversold figures mostly show the present trend to keep its positions.

 

The back and forth cycles are quite common for the 12-day ROC. That's why the prices can be forecasted by analyzing recent cycle movements.

 

Quoted from another site. :D

 

Ciao!

[pepefv89]

Re: pivot point calculation

 

what is the best way to calculate pivots in metatrader? is there any indicator? thanks

[Trader99]

Re: pivot point calculation

 

There are many pivot point indicators for Metatrader. Just gooogle it :-)

[ppc123]

Re: pivot point calculation

 

Beside the pivot points, the levels calculated using Murrey Math are quite accurate... You can refer to that Murrey Math indicator, which can be found by a search in google.

 

 

Also, some notes copied from earnforex.com:

 

The floor pivot points, presented in the first column of the calculation results table, are the most basic and popular type of pivots used in Forex trading technical analysis. The pivot point is interpreted as the primary support/resistance level - the point at which the main trend will be born. First-third level resistance and support points serve as additional indicators of possible trend reversal or continuation. The rules to calculate floor pivot points are quite simple:

 

Pivot (P) = (H + L + C) / 3

 

Resistance (R1) = (2 X P) - L

 

R2 = P + H - L

 

R3 = H + 2 X (P - L)

 

Support (S1) = (2 X P) - H

 

S2 = P - H + L

 

S3 = L - 2 X (H - P)

 

Other popular method of calculating a simple TA indicator which helps trader to forecast future trend is Tom DeMark's pivot points. Which are not pivot points exactly, but predicted low and high of the period. To calculate DeMark's pivot points follow these rules:

 

If Close < Opencurrent Then X = H + 2 X L + C;

 

If Close > Opencurrent Then X = 2 X H + L + C;

 

If Close = Opencurrent Then X = H + L + 2 X C;

 

New High = X / 2 - L; New Low = X / 2 - H

 

Woodie's pivot points are similar to floor pivot points, but are calculated in a somewhat different way, giving more weight to the Close price of the previous period. Use the following rules to calculate Woodie's pivot points:

 

Pivot (P) = (H + L + 2 X C) / 4

 

Resistance (R1) = (2 X P) - L

 

R2 = P + H - L

 

Support (S1) = (2 X P) - H

 

S2 = P - H + L

 

Camarilla pivot points is a set of eight very probable levels which resemble support and resistance values for a current trend. The origin and the precise way to calculate these pivot points are unclear. The most important is that these pivot points work for all traders and help in setting the right stop-loss and take-profit orders. I use the following rules to calculate Camarilla pivot points:

 

R4 = (H - L) X 1.1 / 2 + C

 

R3 = (H - L) X 1.1 / 4 + C

 

R2 = (H - L) X 1.1 / 6 + C

 

R1 = (H - L) X 1.1 / 12 + C

 

S1 = C - (H - L) X 1.1 / 12

 

S2 = C - (H - L) X 1.1 / 6

 

S3 = C - (H - L) X 1.1 / 4

 

S4 = C - (H - L) X 1.1 / 2

[napaj]

Re: pivot point calculation

 

Hi,

 

I use pivot calculation from this page. http://www.fxstreet.com/technical/currencies-glance/pair.aspx?id=EUR/USD

Works for me.