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Saturday, September 7, 2024

A Sophisticated Look at Pivot Points | John Seckinger

The following is based on an SFO article published in December 2004 by John Seckinger, titled, "Take a Two-Dimensional Approach: A Sophisticated Look at Pivot Points." He offers these tips:

    Don't look at the range of S2 to R2 as support and resistance levels. Rather, consider them oversold (S) and 
       overbought (R) areas.
    S2 to R2 range of values across daily, weekly, and monthly periods: If two values are close together then they 
       lend more significance to the area.
    If the market trends on day 1, the odds rise tremendously that the market will be range bound between daily
       S1 and daily R1 the next day.
    In a quiet market when traders are waiting for an important earnings announcement or economic report, 
       look for daily R1 and S1 levels to hold and for the market to return to the daily pivot.
    A move outside of daily R1 or S1 usually does not mean a breakout.
    The odds suggest that the entire week's price action will remain between weekly R2 and S2.
    Avoid going long when the market moves above weekly R2 (it's overbought) 
       and avoid going short when price moves below weekly S2 (oversold).
    Consider going short at weekly R1 or long at weekly S1 with a profit objective of the weekly pivot.
    Consider going long at weekly S2 or short at weekly R2 with a profit objective of weekly S1 or R1,  respectively.
 
   —  John Seckinger

Daily, Weekly, and Monthly Floor Trader Pivot Points for the Week of September 9, 2024:
 
 » There often will be confluences when comparing the weekly and daily S2 to R2 levels 
that increase this area’s significance. «   —  John Seckinger

Here are the formulas to calculate daily, weekly, monthly, etc. Floor Trader Pivot Points:


Quoted from:
Thomas Bulkowski (September 7, 2024) - Swing Traders: Pivot Points.

DJIA Index (daily bars) — Weekly Pivot Levels (September 3 - 6) & Daily Pivot Levels (Friday, September 6).

See also:
John Seckinger (2004) - Take a Two-Dimensional Approach: A Sophisticated Look at Pivot Points.