Tom DeMark Pivot Point System

Where are you getting the formulae for DeMarl's Pivots?

I clipped the following from Investopia: http://www.investopedia.com/articles...all=1&viewed=1

you know what? after further review - yours is just a cleaner way to calculate the same thing - please disregard my previous post.

First, calculate "X":
if C < O then X = (H+(Lx2)+C)
if C > O then X = ((Hx2)+L+C)
if C = O then X = (H+L+(Cx2))

PP = X/4
R1 = (X/2)-L
S1 = (X/2)-H

as far as I understand, R1 and S1 are the only Pivots used ?
I don't understand where you guys are coming from with multiple R and S levels ??
If the intention of the DeMark Pivots is to identify the likely High and Low of the Day ahead, then surely that's just the 2 pivot levels produced above, even the PP isn't officially recognised ?


(Although for intra-day Reversals, I do also create Mid-points between R1-PP and PP-S1)
(the only use I've found for the PP)

I am a big fan of Tom Demark but i do believe he has his short falls.

I use his pivot points too but in conjunction with the traditional pivot points.

We all seem to know how to calculate pivot points including that of Tom Demark, so i wont bother repeating any formulas here.

tom Demark gave some conditions before the expected high/low of the next trading day is calculated:
1. if the open of the last trading session is lower than the close;
2. if the open of the last trading session is higher than the close; and
3. if the open of the last trading session is equal to the close.

if you can pull out you excel sheets and do some home work, you'd discover that the formulas are similar with the so-called mid-levels in some traditional pivot point charts. the mid-levels are gotten by getting the average of two pivot levels, or simply locating the mid point between two pivot points.

eg M1 = (S1+S2)/2, M2 = (S1+PP)/2, M3 = (PP+R1)/2, M4 = (R1+R2)/2

I have verified over and over that:
1. if the open of the last trading session is lower than the close, then using the formula given by tom Demark the high of the next trading session calculated would equal M4 and the Low would equal M2

2. if the open of the last trading session is higher than the close, then using the formula given by tom Demark the high of the next trading session calculated would equal M3 and the Low would equal M1

3. if the open of the last trading session is equal to the close, then using the formula given by tom Demark the high of the next trading session calculated would almost equal R1 and the Low would almost equal S1

So what do i use them for?

once the expected high (low) is exceeded to the upside (downside), i consider the market to be overbought (oversold) and would watch out for a possible reversal.

I use a combination of the weekly and daily pivots, with the weekly interpretation taking first place over the daily, in case of contrary opinion from both.

i use my knowledge of MACD, RSI, CCI divergences for strong confirmations of reversals. I also use wolfe waves within as a signal

exits and entries are left to the discretion of the trader.

well that is it

Happy trading

Do you use also the Jackson Zones?

I programmed a little tool for those zones, but it is useful only for specialists ...

why is my TD pivots indicator looking like this? could someone please share a real one?

can you post this demark pivot indicator please

It is for TradeStation (not MetaTrader) - and besides the code is locked.

Dear Master Coders and Master Traders,

I am looking all over Google for a Pivot daily Indicator which auto reloads every days @ specified time and sends email with all Pivot Point levels , R1 R2 R3 R4 R5 || S1 S2 S3 S4 S5 at given local time.

So that we can specify the same for early morning and see the email with levels. It will be great, if someone help to get a single indicator or ea where we can add multiple pair, and get email for each pair separately.

Thank you in advance.