I have created a new indicator, KamaPivotRange, and you can download it for free at www.kamacoder.com/products.aspx.
KamaPivotRange indicator plots the daily pivot range described by Mark Fisher in his book, The Logical Trader. Floor traders have been using the method to identify the key area where the market is likely to find support or meet resistance. The daily pivot point is calculated as (High + Low + Close) / 3, where High, Low, and Close are the high, low, and close price of the prior trading day, respectively. The daily pivot differential is calculated as Pivot Point - (High + Low) / 2. The upper and lower bounds of the pivot range are the pivot point plus or minus the pivot differential. Fisher has proposed several trading strategies based on the daily pivot range. Please refer to his book for all the details.
The indicator has an interesting parameter, SettlementBars. It is intended to approximate the settlement price. When it is set to 1, the close price of the prior trading day is used in the calculation of the pivot point. When it is set to a value higher than 1, say, 10, the calcuation instead uses the average of the typical price of the last 10 bars of the prior trading day.
Please email me at [email protected] if you have any feedback.
KamaPivotRange indicator plots the daily pivot range described by Mark Fisher in his book, The Logical Trader. Floor traders have been using the method to identify the key area where the market is likely to find support or meet resistance. The daily pivot point is calculated as (High + Low + Close) / 3, where High, Low, and Close are the high, low, and close price of the prior trading day, respectively. The daily pivot differential is calculated as Pivot Point - (High + Low) / 2. The upper and lower bounds of the pivot range are the pivot point plus or minus the pivot differential. Fisher has proposed several trading strategies based on the daily pivot range. Please refer to his book for all the details.
The indicator has an interesting parameter, SettlementBars. It is intended to approximate the settlement price. When it is set to 1, the close price of the prior trading day is used in the calculation of the pivot point. When it is set to a value higher than 1, say, 10, the calcuation instead uses the average of the typical price of the last 10 bars of the prior trading day.
Please email me at [email protected] if you have any feedback.
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