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Pivot Point Formula seems to have a flaw in it for R3 and S3 Rate this Topic:
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playgap
Posted : Friday, June 28, 2013 1:30:29 PM
Registered User
Joined: 4/29/2012
Posts: 21

The following formulas (left side) are what Worden is using to calculate the pivot points:

The correct formula for R3 and S3 are shown on the right side. (floor trader pivots)

 

R3 = High + 2 * (Pivot - Low)                     R3 = PP + 2* (High - Low)    

R2 = Pivot + (High - Low)                           Ok

R1= (2 * Pivot) - Low                                   Ok

Pivot = (High + Low + Close) /3                 Ok

S1 = (2 * Pivot) - High                                  Ok

S2 = Pivot - (High - Low)                            Ok

S3 = Low - 2 * (High - Pivot)                     S3 = PP - 2 * (High - Low)

 

I confirmed it with MyPivots.com and tradestation

playgap
Posted : Friday, June 28, 2013 1:32:49 PM
Registered User
Joined: 4/29/2012
Posts: 21

Just to csarify my prior post,  PP should read "Pivot"

StockGuy
Posted : Friday, June 28, 2013 3:01:54 PM

Administration

Joined: 9/30/2004
Posts: 9,187

I find numerous sources that support our version of the R3 and S3 calculations. Found a few that support your version as well.

markstoxx
Posted : Saturday, June 29, 2013 1:58:42 PM
Platinum Customer Platinum Customer

Joined: 9/23/2011
Posts: 11

Why not offer both so we can plot both and see differences

Bruce_L
Posted : Tuesday, July 2, 2013 8:38:02 AM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

While the built in Pivot Points indicator doesn't plot R4 and S4, your R3 is just our R4 and your S3 is just our S4. Every other line in pivot points are usually (H - L) away from each other. Your version has no pivots that are (H - L) away from R1 and S1.

It is possible to calculate R4 and S4 for each day on a Daily Chart.

Pivot Point R4 and S4



-Bruce
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