PIVOT (Pivot Levels)

PIVOT (Pivot Levels) is the only pure Support/Resistance indicator. It allows to draw one Pivot line (on the chart, the label is P), up to four each support and resistance levels (on the chart, the labels are S1, S2, S3, S4 and R1, R2, R3, R4 respectively), and up to six intermediate lines (on the chart, the labels are M0, M1, M2, M3, M4, and M5).

On the following picture, you can see an example of all sorts of lines drawn with the help of the Pivot Levels indicator.

To apply a PIVOT indicator to a chart, a trader needs to follow the procedure common to all Marketscope indicators. For more information, see the Add Indicator article.

During the procedure, a trader can customize an indicator by specifying its parameters in the Properties dialog box. For more information, see the Change Indicator Properties article.

Parameters - the parameters needed to specify the data to be used in the indicator levels' calculation as well as the way the calculation is to be performed.

Style - the parameters needed to specify the way an indicator's lines are drawn on a chart.

Appearance - the parameters needed to specify the way an indicator appears on a chart.

The time frame for pivot - the parameter allows to specify the size of the time frame, over which the pivot points are calculated. Note that the lines are visible on the chart only if the parameter's value is equal to or greater than the chart's period value. The number of chart periods the line spans over is multiple of the The time frame for pivot parameter's value. The available values are m1, m5, m15, m30, H1, H2, H3, H4, H6, H8, D1, W1, and M1. The default value is D1.

Calculation mode - the parameter allows to specify the pivot points' calculation formula. The available values are Classic Pivot, Camarilla, Woodie, Fibonacci, Floor, and Fibonacci Retracement. The implementation of this or that value employs a corresponding pivot points' calculation formula (see the formulas later in the article). The default value is Classic Pivot.

The parameters listed under the Style heading besides common Color, Width, Style of four support and four resistance levels as well as six midpoint lines are similar to the Style parameters of the majority of other indicators. The Style parameters unique for the PIVOT indicator are:

Show Mode - the parameter allows to specify whether the pivot points' lines are displayed for the current time frame only (Today) or for the whole historical data of the chart (Historical). The default value is Today.

Line labels location - the parameter allows to specify where a line's label is to be placed. The available values are At the end, At the beginning, and At both. The default value is At the end.

Show S1 / S2 / S3 / S4 - the parameters allow to specify whether the corresponding support lines should be drawn on the chart or not. The available values are Yes and No. The default value is Yes.

Show R1 / R2 / R3 / R4 - the parameters allow to specify whether the corresponding resistance lines should be drawn on the chart or not. The available values are Yes and No. The default value is Yes.

Show midpoint lines - the parameter allows to specify whether the midpoint lines should be drawn on the chart or not. The available values are Yes and No. The default value is No.

Depending on the Calculation mode parameter's value, the indicator's values are calculated using the following formulas:

Classic Pivot:

R₄ = PP + R x 3

R₃ = PP + R x 2

R₂ = PP + R

R₁ = PP x 2 - LP

PP = (HP_i-1 + LP_i-1 + CP_i-1) / 3

S₁ = PP x 2 - HP

S₂ = PP - R

S₃ = PP - R x 2

S₄ = PP - R x 3

Camarilla:

R₄ = PP + R x 1.1 / 2

R₃ = PP + R x 1.1 / 4

R₂ = PP + R x 1.1 / 6

R₁ = PP + R x 1.1 / 12

PP = CP_i-1

S₁ = PP - R x 1.1 / 12

S₂ = PP - R x 1.1 / 6

S₃ = PP - R x 1.1 / 4

S₄ = PP - R x 1.1 / 2

Woodie:

R₄ = HP + (2 x (PP - LP) + R)

R₃ = HP + 2 x (PP - LP)

R₃ = PP + R

R₃ = PP x 2 - LP

PP = (HP_i-1 + 2 x OP_i-1 + LP_i-1) / 4

S₁ = PP x 2 - HP

S₂ = PP - R

S₃ = LP - 2 x (HP - PP)

S₄ = LP - (R + 2 x (HP - PP))

Fibonacci:

R₄ = PP + 1.618 x (HP - LP)

R₃ = PP + 1 x (HP - LP)

R₂ = PP + 0.618 x (HP - LP)

R₁ = PP + 0.382 x (HP - LP)

PP = (HP_i-1 + LP_i-1 + CP_i-1) / 3

S₁ = PP - 0.382 x (HP - LP)

S₂ = PP - 0.618 x (HP - LP)

S₃ = PP - 1 x (HP - LP)

S₄ = PP - x 1.618 x (HP - LP)

Floor:

R₄ = 0

R₃ = HP + (PP - LP) x 2

R₂ = PP + R

R₁ = PP x 2 - LP

PP = (HP_i-1 + LP_i-1 + CP_i-1) / 3

S₁ = PP x 2 - HP

S₂ = PP - R

S₃ = LP - (HP - PP) x 2

S₄ = 0

Fibonacci Retracement:

R₄ = LP + (HP - LP) x 1.272

R₃ = LP + (HP - LP)

R₂ = LP + (HP - LP) x 0.764

R₁ = LP + (HP - LP) x 0.618

PP = (HP_i-1 + LP_i-1) / 2

S₁ = LP + (HP - LP) x 0.618

S₂ = PP - 0.618 x (HP - LP)

S₃ = PP - 1 x (HP - LP)

S₄ = PP - x 1.618 x (HP-LP)

where:
R_1,2,3,4 - are resistance levels.
S_1,2,3,4 - are support levels.
PPMA_i - is the value of the current period being calculated.
PP - is the Pivot Point value.
HP_i-1 - is the highest price value of the time frame (specified by the The time frame for pivot parameter) immediately preceding the one being calculated.
LP_i-1 - is the lowest price value of the time frame (specified by the The time frame for pivot parameter) immediately preceding the one being calculated.
CP_i-1 - is the closing price value of the time frame (specified by the The time frame for pivot parameter) immediately preceding the one being calculated.
OP_i-1 - is the opening price value of the time frame (specified by the The time frame for pivot parameter) immediately preceding the one being calculated.
R - is the difference between the highest and lowest price values of the time frame (specified by the The time frame for pivot parameter) immediately preceding the one being calculated.