Dynamic Pivot Point for Day Trading

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Hi All;

I googled a lot on Pivot points and found many types like: classic, fibo and Camarila etc. But yet I am really confused yet to understand the exact meaning of Pivot Points.

What I understand till now is that it is the price point above which its buyzone and below it its sellzone.

Am I correct in my understanding?

Seniors and experts confirmation will help me to understand it clearly.

Also, can I get the perfect logic / afl to calculate the dynamic pivot points in live day trading?


@Santy, IMO; when you are looking for some generic Technical Analysis information, one of the most useful resources to use is the StockCharts "Chart School"

Here is their info on Pivot Points

Pivots Points are significant levels chartists can use to determine directional movement and potential support/resistance levels. Pivot Points use the prior period's high, low, and close to estimate future support and resistance levels.

Essentially It is as you understood.
Re the formulas I recommend you to try to replicate their calculation in AmiBroker. It is not that difficult.

Moreover, there are a lot of code samples around and in particular, some good ones in the Member's Zone AFL library to learn from!


Thanks for replying.

I guess they all say about Pivot about the day which remains constant for the entire trading session.

But I believe in live market every moment the dynamics change and so the pivot point also should change and hence I kept the heading of the thread.

I need any lights on this regard along with any code if anybody has worked on it.


There are many books describing the many forms of pivots, but for me the best book to show you how to use them "to make money" is Secrets Of A Pivot Boss. Also available from The Man Himself

Besides their classic support and resistance roles, there are many other subtle ways of using them (described in that book, e.g volatility contraction and expansion).

But for me, they all reduce down to knowing Price Action. (So I don't use pivots).

If you want the pivots to change during the session, then instead of (or as well as) using Daily pivots, simply use Hourly pivots, 15 Minute pivots, etc.


So, can price action theory be coded into an afl?

Can you please teach me how to use it practically?


You can't really code Price Action into AFL because there are so many aspects to it. You would end up trying to code a thousand rules into AFL, and even then, Price Action requires a certain amount of experience or "feel". After a thousand hours of intraday screen time you will develop a feel for price action.

You could start by reading Understanding Price Action by Bob Volman, which is sort of a classic, but you really need to develop experience. Reading other TA books and learning to recognise price patterns is a start. But you never stop learning.

The problem with a lot of people (and especially beginners) is that they don't want to put in the hours/years to learn their craft.

Everyone ends up developing their own style that they become comfortable with anyway. I use PA but you might detest it.

"You can't put an old head on young shoulders".

You need to start with SOMETHING. Anything. And stick with that until it no longer serves you. You started asking about Pivots and then immediately switched to PA when I mentioned it. If I mention something else, you'll go off chasing that!

You really will learn a LOT if you just start with the "Secrets Of A Pivot Boss" book. Because Frank has so much experience besides pivots and he doesn't try to hide it from you.