Tuesday, August 4, 2009

Figured out Pivots

Ok, so pivot points is something everyone is ranting on about when it comes to trading short term, so not to be lost in the madness of the crowd, I decided to learn the madness.

The easy formula for pivots is the 5 point method which are the following equations.
Simple, I like it for donkeys like me, and probably everyone dumb enough to think they can make money in this game. LOL.

R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)

I'll add these to my morning worksheets.