I'd like to see if we can form a consensus on how to calculate pivot points.
Please post:
1. The formulas you use.
2. Where you got that method of calculating them.
3. Comments, notes, insults, etc.
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Here's mine:
R4 = MEAN + HIGH - LOW
R3 = R2 + ((R4 - R2) / 2)
R2 = (MEAN * 2) - LOW
R1 = ((R2 - MEAN)/2) + MEAN
MEAN = (HIGH + LOW + CLOSE) / 3
S1 = (MEAN - (MEAN - S2) / 2)
S2 = MEAN * 2 - HIGH
S3 = S2 - ((S2 - S4)/2)
S4 = MEAN - HIGH + LOW
These came from Aden Rusfeldt's course "Currency Trading Made Easy", and he specifically said that this was the "right way" to calculate them. He can't be reached for comment right now......
Note that the mean, R2, R4, S2 and S4 are calculated from price. The other pivots are just calculated to be halfway between.
If one substitutes the formula for MEAN into the equations where MEAN is used, you find that none of it really makes much sense. Unless it's over my head, which a lot of things are.
for example,
R4 = ((4 * HIGH) - (2 * LOW) + CLOSE)) / 3
and
R2 = ((2 * HIGH) - LOW + (2 * CLOSE)) / 3
Please post:
1. The formulas you use.
2. Where you got that method of calculating them.
3. Comments, notes, insults, etc.
// -------------
Here's mine:
R4 = MEAN + HIGH - LOW
R3 = R2 + ((R4 - R2) / 2)
R2 = (MEAN * 2) - LOW
R1 = ((R2 - MEAN)/2) + MEAN
MEAN = (HIGH + LOW + CLOSE) / 3
S1 = (MEAN - (MEAN - S2) / 2)
S2 = MEAN * 2 - HIGH
S3 = S2 - ((S2 - S4)/2)
S4 = MEAN - HIGH + LOW
These came from Aden Rusfeldt's course "Currency Trading Made Easy", and he specifically said that this was the "right way" to calculate them. He can't be reached for comment right now......
Note that the mean, R2, R4, S2 and S4 are calculated from price. The other pivots are just calculated to be halfway between.
If one substitutes the formula for MEAN into the equations where MEAN is used, you find that none of it really makes much sense. Unless it's over my head, which a lot of things are.
for example,
R4 = ((4 * HIGH) - (2 * LOW) + CLOSE)) / 3
and
R2 = ((2 * HIGH) - LOW + (2 * CLOSE)) / 3