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Pivot Point Calculator 1136


I have been using the pivot point calculator for awhile, the camarilla formula, 4 decimal places for forex. I have noticed that the calculations for the midpoint between the pivot point and S1 is sometimes smaller than S1. Shouldn't the pivot point figures after the pivot point to S4 become sequencially smaller the further away from the pivot point? Sometimes they are not. For example try High 1.2859 Low 1.2456 Close 1.2825. Midpoint to S1 is 1.2751 S2 is also 1.2751?????? S1 is 1.2788, larger than 1.2751. Is this normal or the calculations wrong?
Thanks.
The calculator is working correctly and producing accurate results - i.e. the calculations are not incorrect. What is happening is that the Camarilla formula is using the Closing price as a "base" and is doing its calculations off that. The Pivot Point is using the average of the High, Low and Close to calculate itself. Given those facts, it is possible that the Pivot Point will appear above or below some of the Support and Resistance points because it includes the High and Low in its calculation which the Support and Resistance points don't. This will obviously have a similar effect on the midpoints between the Pivot Point and the S1 or R1 point.

Let us know if that answers your question...?
Thanks Day trading for the reply. Being fairly new to using pivot points, I was just a little confused at the numbers not being sequencial. I just wanted to make sure I wasn't doing something wrong. I have been amazed at how accurate the numbers are. The euro high for August was 1.2938, using the pivot point calculator the R3 was 1.2936!
You're welcome. I did a little bit of testing on the classic pivot points against the E-mini S&P500 but have never tested using the Camarilla pivots nor against the Euro FX. What start and end time do you use to get the high and low (and obviously the close)?
Hi, I don't think my reply was sent so I will send again. Sorry if this is a duplicate. I am still unsure which time to use for trading forex. I read John Persons book on Pivot Points, I will quote from his book:
"I apply the prior nights session high or low that would include the days sessions range, whichever figure is greater, and then use the day sessions close"

I was very confused at the beginning trying to figure this all out. I ended up using the close of 23:00 GMT. I am using DBFX charts, their server time is different, so 23:00 GMT on their charts is 16:00, on the hour charts. I have been using 17:00 to 16:00 on their charts, 0-23:00 GMT. Tokyo being 0 GMT. The Camerilla formula seemed to give closer results than the classic. For August R3 was 1.2936 the actual 1.2938, S3 1.2714 actual 1.2693.

I am still unsure what to use for daily pivot points 23:00 GMT or New York close. The Tokyo and London trading session before the New York open also must have some influence on the New York open. Do you recommend using the Tokyo/London High/Low before the New York open, then the New York close from the previous day? I have also thought of using pivot points on an hourly basis say every 4 hours etc, would this work?

Thanks,
John
The objective of the pivots is to capture the most probable upper and lower bands of the current trading range based on the prior trading range. If there are no news events to push you out of the previous trading range then the market should bounce around in the same area and the pivots should give higher probability turning points.

With a pit traded future it's easy to pick the start and end time. With continuous futures you often overlay the continuous future on the pit traded future's time to get the start and end times which will be the most liquid times, which brings us to forex.

It is my opinion that the best start and end times to use for working out the high, low and open prices to use in pivots for forex would be the times when the market is most liquid. If the market has 2 liquid sessions split by a "virtual" lunchtime then use both.

When does most volume trade in the Euro FX market?
The range of trading between 8am and noon EST accounts for approx. 70% of the average range of trading during the European trading hours and 80% approx. for U.S.
Going forward I would compare the results from the hours that you are currently using (don't change those because they seem to be working very well) with the 4 hours from 8 to 12 EST and see how they compare for accuracy and results.
I compared the results for classic and camarilla to the above trading times. The range for the above time was low 1.2795 High 1.2818. Not a very good day.

Camarilla s4 was 1.2840. Classic formula S1 was 1.2841 which was broken. Classic S3 was 1.2789, close to actual low of 1.2795.

Camarilla S3 for the week is also 1.2793. Even though the numbers aren't exact, I wouldn't be selling now.

The pivot point are a great road map.
Well they've been around for a long time and I think that some of the credit to their functioning goes to the self-fullfilling prophecy because of the number of people using them. I believe that they were originally called floor pivots and held on cards by the pit traders before they moved to the screens.
quote:
Originally posted by day trading

The calculator is working correctly and producing accurate results - i.e. the calculations are not incorrect. What is happening is that the Camarilla formula is using the Closing price as a "base" and is doing its calculations off that. The Pivot Point is using the average of the High, Low and Close to calculate itself. Given those facts, it is possible that the Pivot Point will appear above or below some of the Support and Resistance points because it includes the High and Low in its calculation which the Support and Resistance points don't. This will obviously have a similar effect on the midpoints between the Pivot Point and the S1 or R1 point.


Yes, the calculator is correct, but intuitively, it would seem that a Pivot Point would be the anchor around which the support/resistance bands would be aligned. In the Camarilla formula, the anchor is the last Close. So, of what use is the PP? It seems to tell us nothing because we would expect most of the price action to occur between S1 & R1 which are poorly correlated with the PP. On the other hand, it would make more sense to substitue the PP (instead of the Close) into the formula as do the Classic & Woodie's PP formulas. What do you think?
So you place a limit order at the closest P/R/S level to trade in the direction of the gap? Other rules would be that the order was canceled if the gap filled before the order filled... And the size of the stop?