Camarilla Equation - Is it valid?

funky · Oct 11, 2003

Quote from nononsense:

Very convincing Funky.
I admit, as some other posters, that I am not too sure about how to use the pivots as a decision mechanism. Would it be possible to describe the decision algorithm underlying pivots?

Thank you for commenting.

i would tell you, but then i'd have to kill you.

seriously though, obviously i'm not gonna give away my strategy completely, but you can easily come up with one on your own. just sit and watch the market until you get it. plot the pivot lines (from the excel sheet that i gave you) each day, and see how price moves throughout the day. you'll figure it out if you are very observant.... good luck!!!!

JDRower · Oct 11, 2003

Mr. Funk
I've seen a modified pivot values calculation that incorporated the next day's open if there is a "significant" gap.

Do you ever use that method.

Best regards,
JD

funky · Oct 12, 2003

Quote from JDRower:

Mr. Funk
I've seen a modified pivot values calculation that incorporated the next day's open if there is a "significant" gap.

Do you ever use that method.

Best regards,
JD

nope....i have however seen price 'offset' the pivots (the pivots obeyed were actually the mid-mid-pivots, the small #'s on my xls sheet). you will find that the #'s are good no matter. watch price and let PRICE tell you which pivots are being used.

its like a fisherman who knows when the fish are gonna be feeding....he doesn't know where exactly the fish are, but he's got a good idea how to find out.

also, be careful you put in the correct high/low/close from the last day....many times in the beginning i got tripped up b/c i didn't filter my tick data (some ticks that were erroneous got me)...if you see price not behaving correctly around pivots this is usually a good tipoff

for SPY, last price is the price last reported before 1600.

have fun!

steve46 · Oct 12, 2003

Nonsense (& others)
Look, this is getting a little ridiculous. Its not hard to get the formula for floor pivots. Learning how to use them isn't a mystery either. You observe how price "acts" as it tests these pivot points. If price "respects" the pivot and backs off, it is telling you something important and you can enter positions based on that information. If on the other hand, price moves through a pivot, you have the option of putting on a position, using that point as a stop. Pivots alone do not make a system. You have to look at additional data like support and resistance, volume, etc. Instead of trying to get someone to tell you how to do it, you might want to review some of the systems that use pivots and try to develop your own style. Try reading Mark Fisher's book "The Logical Trader" or John Clayburg's "Four Steps to Trading Success" to see how they use the pivot concept to develop systems. When I hear comments like "If I told you I'd have to kill you", I have to suspect that these are the folks that you see every once in a while mistreating their pets.

manz66 · Oct 12, 2003

Quote from steve46:

Nonsense (& others)
Look, this is getting a little ridiculous. Its not hard to get the formula for floor pivots. Learning how to use them isn't a mystery either. You observe how price "acts" as it tests these pivot points. If price "respects" the pivot and backs off, it is telling you something important and you can enter positions based on that information. If on the other hand, price moves through a pivot, you have the option of putting on a position, using that point as a stop. Pivots alone do not make a system. You have to look at additional data like support and resistance, volume, etc. Instead of trying to get someone to tell you how to do it, you might want to review some of the systems that use pivots and try to develop your own style. Try reading Mark Fisher's book "The Logical Trader" or John Clayburg's "Four Steps to Trading Success" to see how they use the pivot concept to develop systems. When I hear comments like "If I told you I'd have to kill you", I have to suspect that these are the folks that you see every once in a while mistreating their pets.

Knowing pivot (p, r1, s1,....) is not enough, you have to include volatility in the calculation also, from the previous sessions. And other things as mentioned in the above post.

JDRower · Oct 12, 2003

Mr. Funk
Occasionally the overnight prices will provide highs and/or lows that are different from the standard trading hours. Inclusion of those prices would change the Pivot Point calculations.

Do you ever include the overnight values? Why?

Thanks
JD

SethArb · Oct 12, 2003

the Demark pivots

funky · Oct 12, 2003

Quote from JDRower:

Mr. Funk
Occasionally the overnight prices will provide highs and/or lows that are different from the standard trading hours. Inclusion of those prices would change the Pivot Point calculations.

Do you ever include the overnight values? Why?

Thanks
JD

no i don't. why? because i haven't had any problems with my system. if there becomes a problem, then i will probably look to see if this might help, but until then i'm just gonna execute my system. don't fix what isn't broken!!

traderkay · Oct 13, 2003

my guess is funky looks if the pivot is holding, by looking at price (candles) forming at it, if it seems like holding then he goes for the bounce. if it seems like breaking he either goes with the break or waits for the break and retest to go in the direction of the break. he's also very nimble, moving stop to break even pretty quick. am i even close?

funky · Oct 13, 2003

Quote from traderkay:

my guess is funky looks if the pivot is holding, by looking at price (candles) forming at it, if it seems like holding then he goes for the bounce. if it seems like breaking he either goes with the break or waits for the break and retest to go in the direction of the break. he's also very nimble, moving stop to break even pretty quick. am i even close?

every morning you have to jump on the train. every evening you must get off. in between you must capture the market's movement. think about how you make sure this happens without getting whipsawed around alot. and also think about how you jump onto the train. how do you 'reset' yourself so you can get into a position with the market. you might have to take some additional risk in the beginning to make sure you can ride this train correctly. remember its not your entry that determines the stop, its the trend.