Anybody know the answer to this question:
How do you calculate Pivot Point properly:
Traditionally Pivot Points are areas where the sentiment for the day changes from High to low. The formula is as follows:
Pivot Point Calculation:
High + Low + Close/3
R1=2*Pivot - Low Normal Trading Range
S1=2*Pivot - High For Next Period
R2=Pivot + (Resistance1 - Support1) -Extreme Trading Range
S2=Pivot - (Resistance1 - Support1)
R3=High + 2*(Pivot - Low)
S3=Low - 2*(High-Pivot)
Now my problem is that lets say that the Japaneese session starts at 20:30 EST, If I want to calculate the Pivot Point for the USD/JPY pair do I look back at 24 hours before starting from 20:30
or
do I check what was the High/Low/Close from 8:30 in the morning up to 20:30
The problem that I am encoutering is that If the market does move from 24 hours ago up to start of the New York session and then makes a really big move in the New York session, then my pivot point will be off, because it makes more sense to just take the New York session and calculate the pivot point
Thanks for any help
How do you calculate Pivot Point properly:
Traditionally Pivot Points are areas where the sentiment for the day changes from High to low. The formula is as follows:
Pivot Point Calculation:
High + Low + Close/3
R1=2*Pivot - Low Normal Trading Range
S1=2*Pivot - High For Next Period
R2=Pivot + (Resistance1 - Support1) -Extreme Trading Range
S2=Pivot - (Resistance1 - Support1)
R3=High + 2*(Pivot - Low)
S3=Low - 2*(High-Pivot)
Now my problem is that lets say that the Japaneese session starts at 20:30 EST, If I want to calculate the Pivot Point for the USD/JPY pair do I look back at 24 hours before starting from 20:30
or
do I check what was the High/Low/Close from 8:30 in the morning up to 20:30
The problem that I am encoutering is that If the market does move from 24 hours ago up to start of the New York session and then makes a really big move in the New York session, then my pivot point will be off, because it makes more sense to just take the New York session and calculate the pivot point
Thanks for any help