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Chapter 8
Overlay Indicators
Example of Pivot Points
Calculation
There are several methods used to determine the Pivot Point. We have included the three different
formulas in Track ‘n Trade 5.0.
Traditional formulas:
Pivot Point = (H + L + C)/3
First Support Line = (2 x Pivot Point) - H
First Resistance Line = (2 x Pivot Point) - L
Second Support Line = Pivot Point - (H - L)
Second Resistance Line = Pivot + (H - L)
Variation 1:
This method changes the formula used to derive the Pivot Point. The changes include adding the
trading day’s open and calculating the average of the four values. With this variation, one takes
into account both opening gaps and overnight trading. The calculation is here:
Pivot Point = (H* + L* + C* + O**) / 4
*=Yesterday
**=Today
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