Pivot Points are used to project potential support and resistance levels. The main time periods used are daily, weekly, and monthly pivots. To calculate weekly or monthly numbers, simply replace “forex indicator parabolic sar formula’s” with “last week’s” or “last month’s” high or low.
Dow Jones Industrial Average mini-Dow futures contract reversed course and headed downward. After that, the next potential support was at the Pivot Point. However, the mini-Dow broke through the Pivot Point. Notice that when the mini-Dow attempted to reverse course, it was rejected by the Pivot Point now acting as resistance. An important technical analysis concept is that when resistance is penetrated the prior resistance might then become support.
S1 held strong and the mini-Dow reversed direction yet again. The next resistance line was at the Pivot Point, which failed. The trading day ended by the mini-Dow testing the Pivot Point, now acting as support, which subsequently held. From there, the index rallied on into the close.
More ways to use Pivot Points is discussed on the next page. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. Aroon indicator is a young one, developed by Tushar Chande in 1995. Aroon was created to measure strength of a trend and potentials for its continuation as well as the quality and type of the trend: up-trend, down-trend or sideways moving market. The Aroon indicator scale ranges from 0 to 100.
There are 4 important levels to monitor when trading with Aroon indicator: 0, 30, 70 and 100. The default time period for Aroon indicator is 25, on some panels – 14. But, it can be changed to, for example, 10-periods for shorter term trades or to 50-periods for longer ones. How to trade using Aroon indicator? As market changes, traders adjust their trading approaches and methods from trend following to tools used during market consolidations. Aroon indicator helps traders to determine when to use a trend following indicators and tools and where to switch to oscillator like tools that work best in consolidating markets.
One of the major problems of the aroon indicators is the arbitrary time period. If you vary the period, from say 25 to 15 days, you get a second diagram that appears to be, essentially, offset from the first, therefore giving completely different signals! There is no “holy grail” when it comes to indicators. The best thing is to use multiple indicators for confirmation. It is also important to understand the formula used to calculate each indicator, to avoid using linear variations of the same algorithm which, of course, would yield the same result instead of valid confirmation. 4 file for this indicator for download?
The problem is that you should know how to use, i mean how you read the indicator you are using. I have a set up of twelve indicators. I use all at the same time one by one. Thanks and good luck to all. According to the experience I’ve has this indicator, which I appreciate, It’s very helpful to use when taking a trade position, not that much good when exit the trade. Which indicator or something else can be used for confirmation of up trend period length?
2, moved by 3 bars into the future. Alligator indicator helps to determine the presence and absence of a trend as well as its direction. If lines are intertwined or laid in the wrong order or are moving close together as one, it means that Alligator is sleeping with its mouth closed. Traders should not open new trades. As Alligator sleeps it becomes hungry.
3 lines move closer together or intertwine again. Elliott wave traders can use Alligator as a helping indicator to identify impulsive and corrective waves: when price trades outside Alligator’s mouth, the impulsive wave is forming, when price trades inside Alligator’s mouth, the corrective Elliott wave is forming. Don’t feed the Alligator when it sleeps! Can anyone explain the rationale behind shifting the Alligator lines forward in time?