Indicator - Pivot Point Average
Function - Pivot Point
Indicator - Pivot Point Levels
Category: Swing Identificator > PivotPoint
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.
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.
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.
INPUT: METHOD(1), SMOOTH(3);
VARIABLES: PIVOT(0), PIVOTAVG(0), LENGTH(0);
PIVOT = PIVOTPOINT(METHOD);
LENGTH = MAXLIST(1, SMOOTH);
PIVOTAVG = AVERAGE(PIVOT, LENGTH);
IF CURRENTBAR >= LENGTH THEN