JOINT PURCHASES PIVOT-CONFLUENCE SHOW-ME STUDY

PIVOT-CONFLUENCE SHOW-ME STUDY

Some technical analysts calculate ‘pivot’ levels based on the high, low, close and, sometimes, open of the new day. and believe that these levels hold special significance as support and resistance levels. Program 2 calculates these pivot levels (using the classic method of calculation, the ‘Woodie’ levels, or the ‘Camarilla’ levels) it then seeks to find pivot levels that are close to those found previously on the chart (within a specified user input tolerance) and draws these levels on the chart.

The rationale behind the program is that if pivot levels have had real significance on a previous day then some of that influence could still be felt on the current day.



The program works with versions 8.7 and above, including TradeStation version 9.1.

The following chart shows the program applied to a 10 minute GBPUSD chart.



This Pivot-Confluence show-me study works on intra-day charts. Each day it calculates pivot levels and plots them on the chart. These levels are calculated using the high, and low between specific user defined times the previous day and the close at an end time. These times may be the start and end of a day or they could be just part of a day. Similarly, the ‘Woodie’ pivot uses an open time. This is set as a user input.

For 24 hour charts or others that have data that spans midnight, the program correctly uses the data in the 0000 bar as belonging to the previous day.

The program then compares these new levels with those already stored in an array. If they are within a user defined tolerance of a pre-existing line then they are combined with the existing line and the thickness parameter of that line is increased. If not, they are added to the array and the oldest lines stored in the array is deleted.

A pivot line is extended to the right if its thickness parameter is greater than an input value. The maximum thickness of a line plotted is TradeStation line thickness 4.

Please note: this program does A LOT of processing and can mean that it takes some time for the screen to upload after applying the program to a chart. In order to test it I suggest starting with a limited number of bars and starting with a small NumberPivots value and then increasing the number of bars.

The following video explains the use of the program in more detail.

Video Demonstration Of Daily Pivots Confluence Program