Pivot Magic Trading Course


Range, Breakout, and Pivot Calculations
 A free courtesy e-mail data service


PLEASE NOTE:

 The Daily StatsZine now includes: 

  • Daily updated stats (list below)

  • Daily calendar of economic reports and events

  • Weekly Pivot Magic Journal - Lite version

  • Question and Answer column

  • Periodic Trading Articles

Try-it  - FREE ! 

 

Click HERE to subscribe:

 

1. In the Subject: line, please type "STATSZINE REQUEST" 

2. In the Body of the e-mail, please type your full name and e-mail address.

 

Thank you,

Asher

 =] ;-)>

 

 

 

By the way,  Statszine Calculations are performed on 
Range Projector panels of SMTP/DTP. 

 

SMTP/DTP also feature: 

  • Time and Price calculators
    (Fib and Gann, dynamic and static)

  • Cluster Discovery screens

  • Analysis screens

  • An "on-the-fly"  Elliott-wave extension calculator

Daily StatsZine includes stats for the following contracts:

 

 

Dow

Soybeans

Live Cattle 

Nasdaq

Corn

Crude Oil  

S & P 500

CBOT Wheat  

Coffee

S&P E-mini

Canadian Dollar

Cocoa

TBonds

Swiss Franc

Sugar

Gold

Japanese Yen

Silver

 

Statszine Glossary of Terms

Some Applications for Stats

                                                    

 

 

 

 

 

Terms:

Item

description
 Ranges
        Maximum Largest daily price move during the previous 10-day period.
        Minimum Smallest daily price move during the previous 10-day period.
        Average Average price move over the previous 10-day period.
        Median Middle High-Low price for the previous 10-day period.
Half of the prices were higher and half lower.
        Mode Most frequently appearing price in the range of data.
        Highest Highest High during the previous 10-day period.
        Lowest Lowest Low during the previous 10-day period.
 Breakout
        Maximum Greatest amount by which a day in the range of data exceeded the previous day's high or low.
        Minimum  Least amount by which a day in the range of data exceeded the previous day's high or low.
        Average Average amount by which days in the range of data exceeded previous day's high or low.
        Median Middle amount by which days in the range of data exceeded previous day's high or low.
Half of the breakouts were greater and half  less.
        Mode Most frequent amount by which days in the range of data exceeded previous day's high or low.
 Pivot Points
        R2 Second area of resistance
        R1 First area of resistance
        MID The mid-point of yesterday's range
        PIVOT Average of yesterday's High+Low+Close
        S1 First area of support
        S2 Second area of support
        HIGH Yesterday's High
        LOW Yesterday's Low

 

Some Uses for These Statistics:

A. Pivot Points are allegedly the points the floor traders and those who read the tape like to watch. If the day's price action starts above the Pivot, it will tend to stay above the Pivot. On such a day, Resistance will be met at R1. Should R1 be broken, further Resistance will be expected at R2. (The story is all reversed if the price action is below the Pivot). If after starting the day above the Pivot, the price crosses back through the Pivot, the Pivot will act as a Resistance area.
Some markets tend to respond more to the yesterday's Middle price than to the calculated Pivot, so some traders prefer to watch the Mid rather than the Pivot.
Yesterday's High and Low prices represent important current Support and Resistance. That's Pivots in a nutshell. Obviously, quite useful for both daytrading and for selecting and exercising entries or exits for longer term traders.

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B. Range studies have a variety of uses for the informed trader. For example, as today's trading range approaches the Maximum Range (or Average Range, if you are a more conservative trader) don't enter the market unless there is a reversal, wait for a retracement. Use the Maximum (Average) when evaluating Risk:Reward potential. If you are already in the market (in the right direction), this is a time to watch for an exit. Of course high Volume and Momentum might alter this decision.

C. Breakout values are also useful in a number of ways. Targets and Stops are two. Maximum Breakout implies the maximum price target for the day's trade, continuation or reversal. If the market reverses, for example, some traders like to place their initial stop loss just beyond the pivot, at a distance just behind the Minimum Breakout.

 

 

Disclaimer

Trading in commodity futures or options involves substantial risk of loss. Futures trading is not suitable for everyone. Never place at risk more than you can comfortably afford to lose. Being a successful paper trader does not mean that you will make money when you actually trade real money. Paper trading can NEVER approximate real money trading! Most individual traders who trade commodity futures or options lose money. Did you get that? MOST! Past Results are not necessarily indicative of future results.
The information contained herein is believed to be reliable, but is not guaranteed as to its accuracy or completeness. This publication is NOT to be construed as trading advice in any shape or form whatsoever!

DISCLOSURE OF RISK: THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL; THEREFORE, ONLY GENUINE RISK FUNDS SHOULD BE USED. FUTURES AND OPTIONS ARE NOT SUITABLE AS INVESTMENTS FOR ALL INDIVIDUALS, AND INDIVIDUALS SHOULD CAREFULLY CONSIDER THEIR FINANCIAL CONDITION IN DECIDING WHETHER TO TRADE.

 

 

 

 

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