pivot points

[hermit_trader]

If the pivot points are close together, does it mean the price would have more blocks to break (a range market)?

 

[Pete3212]

Well, generally speaking, the closer they are, the more rangebound the market will be. Although it also means if the market breaks the furthest support or resistance, it may be in for a nice run.

When two pivots are relatively close together (ie. R1 & R2), they usually provide a substantial barrier. (Throw up a chart of the QQQQ today with Woodie's Pivots, you'll see what I mean).

 

[popesidious]

Mark Fisher in "The Logical Trader" which I'm currently reading, says that when in a particular day the pivot range is narrow a larger price range can be expected the following day.

But my question is, what happens on the other way, if we have a wide pivot range can we expect less price range the following day?

I have just completed chapter 2, so hopefully I'll find the answer.