Pivot points

[michaelday]

What is the most widely used formula for calculating PP, S1, S2, R1 and R2 in emini trading?

Thanks

 

[Bob777]

Using previous days high (H), low (L), and close (C):

Pivot Point = (H+L+C)/3

R1 = 2P - L

S1 = 2P - H

R2 = (P - S1) + R1

S2 = P - (R1 - S1)

 

[tymjr]

Variation 1:

PP = (H + L + C)/3
R1 = (PP*2) - L
S1 = (PP*2) – H
R2 = PP + (H - L)
S2 = PP - (H - L)

Variation 2 (same as Bob's):

PP = (H + L + C)/3
R1 = (PP*2) - L
S1 = (PP*2) – H
R2 = (PP -S1) + R1
S2 = PP - (R1 - S1)

Variation 3 (courtesy of El Cazador):

PP = [H + L + C]/3
R1 = PP + [(H - L)/2]
S1 = PP - [(H - L)/2]

Here is yet another variation that is said to help with overnight gaps by weighting the Pivot Point with the current open.

PP = (H+L+C+Today’s Open)/4

I have no experience with this, but a trader that I know seems to prefer it to the traditional formula.

I don’t use pivots point to trade, hence I have know idea as to the value of these examples.

 

[michaelday]

tymjr

I'm just not sure which one is used more widely
Variation 1 or
Variation 2

In today's SP emini trading S1 was 1056 and you can see from today's chart that it was a major support level.

 

[tymjr]

I have most often heard Variation 1 quoted. Below is a link to an explanation of how to trade using pivot points.

http://customtradingsolutions.com/pivotpoints/files/Pivot Points User Manual.pdf

 

[michaelday]

Thanks tymjr,

That's an excellent booklet. I think that emini trading due to high efficiency should be kept as simple as possible.

 

[js1257]

tymjr do you know what * stands for? Thanx

 

[tuna]

js *=multiply /=divide

 

[js1257]

How do I go about putting the formulas in excel to calculate them everyday?