Dynamic Pivot Point for Day Trading

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.

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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.


So, experts please suggest ideas how to calculate pivot points dynamically in a live market.

@santy: Show us how you are calculating your pivot points now (for Monthly, Weekly, Daily, Hourly, Minute) and then tell us what time frame you are having difficulty calculating them for.... Then we can probably help...

As always, the best way to get help here is to show us your work, and where you are having an issue.

My guess is that if you build some pivots yourself, you will be able to make them do/be what you want. It starts with you trying out a few different ideas and seeing which works best for you.

Currently I am using the below code in 1min TF for dynamic pivot point in live market.

Pp= (REF(O,-1)+REF(C,-1)+REF(H,-1)+REF(L,-1))/4;

But, I want experts view on this and their ideas to improvise it to get key levels for carrying out scalping kind of trading in a live market purely on intraday basis.

@santy: As both @paulchivers and @beppe have said, you need to make the system your own.

This is a bit of a esoteric or psychological thing, but you have to know what works for you. You may find that a pivot based on the last 5 minute bar works for you. Another trader may only work with a 30 minute pivot for trading the 5 minute chart. You need to experiment and see what works for you. Then you can code it.

Taking someone else's code/trading style and trying to make it work for you does not always work. In my limited experience, unless it is 100% mechanical, you will personalize it in some way, and then, it is not the same system.

So your code looks to be building a standard pivot. Have you tried overlaying a 5 minute as well to see what that does? How about adding a Range to the pivot above and below to see potential Support / Resistance.

Lots of ways to customize. Try some out. Experiment (not with real money). See if you can back test the ideas.

In all, make it work for YOU.

Great ideas!!!

I will try them out.

Could you please help me for the below:

I am trading the 5 & 10 EMA CROSSOVER.
I want to add the applystop code or normal code for the below 2
conditions to square off the trades already entered by buy or short
strategy execution. we should come out only if

1.loss is 10 points or more
2.for every 10 points profit, stopploss should be revised to 5 more
points and so on till the stoploss is hit.

Please guide me for the above.
I tried the applystop code but did not get success.


Couple of points...

  1. Show what you have tried so far.
  2. Start a new thread for this different idea. Makes it easier for people to find answers by searching later on.
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