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Swing Identificator > Pivot Point Average

Article/Author: "Pivot Pionts", Jayanthi Gopalakrishan, S&C Magazine, Traders Tips, 02/2000

Download: Pivpoint.ela

File Includes:

Indicator - Pivot Point Average
Function - Pivot Point
Indicator - Pivot Point Levels

Category: Swing Identificator > PivotPoint

Description:

This is an average to use with trading techniques based on pivots. A pivot point is the price at which the direction of price movement changes. It is calculated using data from the previous trading day. Analyst Neil Weintraub introduced a methodology to help determine both the daily and short-term trends using the pivot points: besides looking at just the pivot points use their average.

Usage:

If the daily pivot is higher than the tree-day average, it is indicative of a positive trend. If, on the other hand, it is lower, that indicates a negative trend.




Inputs:

Method - The way of pivot calculating:
1: Pivot = (H + L + C)/3
2: Pivot = (H[yesterday] + L[yesterday] + C[yesterday] + Open[today])/4
3: Pivot = (H[yesterday] + L[yesterday] + Open[today])/3
Smooth - number of bars to average.

EasyLanguage Code:
INPUT: METHOD(1), SMOOTH(3);

VARIABLES: PIVOT(0), PIVOTAVG(0), LENGTH(0);

PIVOT = PIVOTPOINT(METHOD);
LENGTH = MAXLIST(1, SMOOTH);
PIVOTAVG = AVERAGE(PIVOT, LENGTH);

PLOT1(PIVOT, "PIVOT");

IF CURRENTBAR >= LENGTH THEN
PLOT2(PIVOTAVG, "SMOOTHPIVOT");