Pivot Point Oscillator

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%

Tough Week of Trading Forex

I’ve been busy this week so my posting has been limited.  I’m going to spit some stuff out now to give everyone an idea of what I’ve been doing. 

It’s been a pretty tough week of trading.  I’ve been busy with my full-time job and have been trying to squeeze in trades here and there.  I’ve been experimenting with some new setups recommended by John Carter, specifically the Squeeze and the Scalper High/Low.  Unlike most people, I experiment sometimes in my real trading account. 

My trading suffers when I don’t have a clear setup plan as it should. 

I’ve been doing a lot of speed reading and this week have been skimming John Carter’s book, "Mastering the Trade." I’ll have more comments later but there is a chapter that deals with formulating a written trading plan.  This is a very beneficial chapter and stresses the need for all traders to have a written trading plan.  I’ll have to write mine and use the examples he gives.

I’ve been experimenting with the Relative Strength studies to formulate a currency "Power Ranking." Based on how a given currency performs against a basket of currencies, a relative strength figure is formulated and graphed to compare to all other currencies.  So for example, a Relative Strength value will be determined for the GBP based on it’s performance against the USD, EUR, CAD, AUD, NZD, CHF, and JPY.  The formula is based on the relative strength index formula but in this case, the daily price changes are figured in for GBP/USD, GBP/EUR, GBP/CAD, GBP/AUD, GBP/NZD, GBP/CHF, and GBP/JPY.  I’ve graphed this using a 9 day moving average and it looks like it may be useful in determining whether a trade would be going with or against the relative strength of a currency pair.  I’m still working on this and will post the graphs when it’s more complete.

I’ve been also experimenting with Pivot Points and plan on doing some extensive studies to use pivot points to create a custom indicator.  I’ve subscribed to a NON-FREE End Of Day data provider so that I have accurate open, high, low, and close values for all currency pairs.  I also needed to do so to be able for my scripts to automatically download the data periodically throughout the day via FTP.  All pivot point calculations on this website as well as any other studies will be based on this new data. 

Popularity: 1%

« Previous Page