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Registered User
Joined: 9/23/2005
Posts: 9
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In Pivot Point Analysis, resistance and support levels are determined as a function of the Pivot Point. Can I add these lines so that they appear as a horizontal resistance (or support) line, rather than as a moving average?
Let's take a single example. The Pivot Point is calculated as
(H+L+C)/3.
I've created a chart template that plots the pivot points as a moving average with a one day smoothing factor.
The first pivot point resistance level can be calculated as
2*((H+L+C)/3)-L
When I add this as an indicator on the same chart template, can Telechart display a horizontal resistance line at that price level instead of a moving average?
Thanks for your help,
Toni Collins
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Registered User
Joined: 1/28/2005
Posts: 6,049
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You can draw a horizontal line with the drawing tool. You may be interested in this:
Drawing Trendlines, Regressions and Writing Notes on a chart
Realize that a smoothing average of 1 means no moving average is applied.(the result is the calculation un-smoothed)
The indicators "move" because the values change everyday. (assuming the H,L,C change during the trading day)
Thanks
diceman
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Registered User
Joined: 9/23/2005
Posts: 9
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Thanks, diceman. I appreciate the input. I especially like your precision in speaking of a smoothing average of 1. You're absolutely right, that's no moving average, is it?
What I'm looking for is a way to automatically see the resistance (and support) generated from Pivot Point analysis. It's certainly possible to manually calculate those numbers and draw them individually on the chart. Unfortunately, that's pretty time consuming and doesn't lend itself to quickly scanning charts for buying and selling opportunities.
So if anyone knows how to have Telechart automatically draw a horizontal line based on a single calculation from price data, I'd love to hear about it.
Thanks again,
Toni Collins
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Registered User
Joined: 9/23/2005
Posts: 9
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Still hoping that a trainer will let me know if this is possible or not.
Thank you,
Toni Collins
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The value of this formula:
2*((H+L+C)/3)-L
Changes every day. In TeleChart it will plot every day's value.
We can force plot a straight line in SnapSheets but I am not sure what value you want plotted as a straight line.... the last/most recent value for the condition (so the line value changes every day)?
- Craig
Here to Help!
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Registered User
Joined: 9/23/2005
Posts: 9
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QUOTE (Craig_S) The value of this formula:
2*((H+L+C)/3)-L
Changes every day. In TeleChart it will plot every day's value.
We can force plot a straight line in SnapSheets but I am not sure what value you want plotted as a straight line.... the last/most recent value for the condition (so the line value changes every day)?
Exactly -- I'd like to see the most recent value of this formula plotted as a straight, horizontal line, representing resistance based upon today's prices.
Thanks,
Toni Collins
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Do you have SnapSheets installed and loaded?
I am not clear the value of having this as a straight line. Are you sure you want the most recent value and not the lowest value over X days?
- Craig
Here to Help!
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Registered User
Joined: 9/23/2005
Posts: 9
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QUOTE (Craig_S) Do you have SnapSheets installed and loaded?
I am not clear the value of having this as a straight line. Are you sure you want the most recent value and not the lowest value over X days?
Thanks, Craig. I do have SnapSheets installed and loaded.
You're right, of course, that this number plotted as a resistance line is not very useful on its own. What I'm really looking for is the Pivot Point convergence of three resistance lines: today's, this week's, and this month's. When these three lines converge, you have a high likelihood of a stock about to go into a decline. (Similarly, the convergence of today's, this week's, and this month's Pivot Point support levels indicates a high probability of a stock ready for a bounce.)
The formulas get more complicated as the time frames get longer, but they are fairly straightforward to calculate. I gave this single formula just to keep the problem simple.
Thanks,
Toni Collins
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Attached is a plot. You can plot three of them (1-day, 1-week and 1-month) if you like.
Add it to the Price History Pane (on the same scale)
Save it in the following folder:
\My Documents\My SnapSheets\Tool Parts\Chart
Once there, you can add it using the ADD STUDY button and choosing MY COMPUTER.
Attachments:
CAS Pivot Point.plot - 5 KB, downloaded 522 time(s).
- Craig
Here to Help!
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Registered User
Joined: 9/23/2005
Posts: 9
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Thanks, Craig. I appreciate the help.
Toni Collins
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Let me know if other changes can be made.
I was thinking of a version that tied to the date pointer. You put the date pointer anywhere on the chart and it plots the pivot of that day as a straight line. Do you think that would be helpful?
- Craig
Here to Help!
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