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Post by brosin on Feb 19, 2010 2:01:00 GMT -5
Pivot Point PP = (H + L + C)/3 First Area of Resistance = R1 = 2PP - L First Area of Support = S1 = 2PP - H Second Area of Resistance = R2 = PP + H - L Second Area of Support = S2 = PP - H + L Interesting. I honestly had/have no idea. Looks good to me. Are these basic finance formulas or something?
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Post by rocknroll on Feb 19, 2010 2:02:53 GMT -5
I just looked up "stock market pivot points" after I saw you guys talking about it here and got this page. www.greekshares.com/pivot_points.phpPivot Points are those price levels that are most likely to act as levels of support and resistance on any given trading day and you can calculate them with the following formula: H = Previous Day's High L = Previous Day's Low C = Previous Day's Close Pivot Point PP = (H + L + C)/3 First Area of Resistance = R1 = 2PP - L First Area of Support = S1 = 2PP - H Second Area of Resistance = R2 = PP + H - L Second Area of Support = S2 = PP - H + L When the prices move through any known pivot points (PP, S1, S2, R1, R2) on increased volume, they are most likely to continue the current trend, and if the prices hit the known pivot point but are unable to move through, then they are most likely to reverse the current trend. Pivot points are areas to be aware of and respect. They are both dangerous and positions of opportunity. Knowing those points can help the trader to identify potential entry points and/or stop loss levels.
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Mikey
Broker/Dealer
Posts: 581
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Post by Mikey on Feb 19, 2010 4:27:44 GMT -5
Thanks for sharing the research Rock, that's good stuff. Here's a link for UK: www.youtube.com/watch?v=HXEJAwQjYYQCheech must have been hitting it hard yesterday, he was rocking the munchies - I believe the official quote was "that VIX chart is yummy, like that dude is ready...to...go" He also points out some neg divergences on the daily charts for the indices (higher price vs. lower volume/MACD) and is bearish overall Some morning observations: Euro just broke out from 134.60 to 135.10, which is the most strength its seen since the Fed announcement, but I'd just say its a good shorting opportunity here (Paper short Euro=$135.10) Even before the Fed announcement, that dollar index looked ready to break thru that $80.6-80.7 resistance level we've been watching for weeks...I think that's a big break and the dollar run will continue into today...will likely take some of my margined VXX position off the table on any spike up but am otherwise feeling nice and cozy holding my cornucopia of short ETF's into today...GLTA, seeya later
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Post by kingdisco on Feb 19, 2010 7:34:51 GMT -5
if i remember correctly they used to be used by floor traders because they were easy to calculate. these traders could watch the pivot points and push and pull the market and stay with the trend.
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