1801...anybody : Hot Topic
Rotation Factor
Search Dictionary
Definition of 'Rotation Factor'
Rotation Factors are also sometimes called Split Counts in Market Profile terminology. The two terms are synonymous.
The Rotation Factor for a single bar (Market Profile bracket) can be one of five values from 2 to +2 and is very easy to calculate. Compare the high of the current bar to the high of the previous bar. If the current bar has a higher high then assign a value of +1, if it has a lower high then assign a value of 1, if the values are the same then assign a value of 0. Do the same comparison with the lows and then add the two values together.
Look at the image and calculate the rotation factor for the second bar. It's 1 because it has a lower high and an equal low (1 + 0 = 1). The third bar has a rotation factor of 0 because the higher high's value of +1 cancels out the lower low's value of 1 for a net value of zero. The fourth and fifth bars have rotation factors of 2 because they have lower highs and a lower lows.
During the day you should keep tracking of the running (cumulative) total of the rotation factors. So after the second bar has completed we have 1 etc. This is how it looks like:
Post a comment if you are still confused.
The Rotation Factor for a single bar (Market Profile bracket) can be one of five values from 2 to +2 and is very easy to calculate. Compare the high of the current bar to the high of the previous bar. If the current bar has a higher high then assign a value of +1, if it has a lower high then assign a value of 1, if the values are the same then assign a value of 0. Do the same comparison with the lows and then add the two values together.
Look at the image and calculate the rotation factor for the second bar. It's 1 because it has a lower high and an equal low (1 + 0 = 1). The third bar has a rotation factor of 0 because the higher high's value of +1 cancels out the lower low's value of 1 for a net value of zero. The fourth and fifth bars have rotation factors of 2 because they have lower highs and a lower lows.
During the day you should keep tracking of the running (cumulative) total of the rotation factors. So after the second bar has completed we have 1 etc. This is how it looks like:

Post a comment if you are still confused.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.
Emini Day Trading /
Daily Notes /
Forecast /
Economic Events /
Trading Indicators /
Search /
Terms and Conditions /
Disclaimer /
Books /
Online Books /
Site Map /
Contact /
Privacy Policy /
Links /
About /
Day Trading Forum /
Investment Calculators /
Pivot Point Calculator /
Market Profile Generator /
Fibonacci Calculator /
Mailing List /
Advertise Here /
Articles /
Financial Terms /
Brokers /
Software /
Holidays /
Stock Split Calendar /
Features /
Mortgage Calculator /
User Pages /
Donate
Copyright © 20042017, MyPivots. All rights reserved.
Copyright © 20042017, MyPivots. All rights reserved.