Pivot Point Oscillator
by Trader Rich
I developed my first esignal custom indicator this evening and I actually think it’s pretty useful. I named it the "Pivot Point Oscillator."
You can plot pivot points on your chart but it fills up the chart and really makes it hard to put anything else over the pivots. But the "Pivot Point Oscillator" is an indicator that can be put at the bottom of your chart. The Oscillator has a min/max range of -100 to 100. The actual pivot is at 0. Here is an example of how it works:
If the price is at Resistance 1, the oscillator value will be 25. If the price then hits resistance 2, the oscillator will hit 50. If the price is between resistance 1 and resistance 2, the oscillator value will be 37.5.
The picture above is of my Pivot Point Oscillator on the USD/JPY 240-minute chart. The current value of -1.73 tells you that the current price is right below the pivot. If you look at the indicator from 01/08 to 01/15, you see that the price goes back and forth through the pivot but never quite has enough momentum to break the Support 1 or Resistance 1 Pivot points. This information could be quite useful for exit and entry points.
I’m still experimenting with it and hopefully will find a use for it in my trader’s toolbox.
Popularity: 1% [?]
This looks like a useful indicator that with one glance gives a real quick opinion, one thought: do you notice how the creators of indicators always name things after themselves ; the “TTM” squeeze, the “Ross” hook – how about if we name this one the “R3PO” ?
:clown:
I love the Star Wars reference….
This looks like a useful indicator that with one glance gives a real quick opinion, one thought: do you notice how the creators of indicators always name things after themselves ; the “TTM” squeeze, the “Ross” hook – how about if we name this one the “R3PO” ?
:clown:
I love the Star Wars reference….