Indicator - Pivot Point Levels
Function - Pivot Point
Indicator - Pivot Point Average
Category: Swing Identificator > Pivot Point Levels
Pivot Points are levels of support and resistance used for day trading highly liquid instruments with a large daily range.
The support and resistance levels are calculated using the previous day's prices, and optionally the opening price of the current trading day.
Go long if the trend is up and price is turning in an upward direction from the pivot.
Go short if the trend is down and price is turning in a downward direction from the pivot.
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.
VARIABLES: PIVOT(0), FIRSTSUPP(0), SECONDSUPP(0), FIRSTRES(0), SECONDRES(0);
PIVOT = PIVOTPOINT(METHOD);
FIRSTSUPP = (2 * PIVOT) - HIGH;
FIRSTRES = (2 * PIVOT) - LOW;
SECONDSUPP = PIVOT - RANGE;
SECONDRES = PIVOT + RANGE;