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My Favorite Emini SP500 Indicator - Calculations Behind It?
I have one question: What are the calculations behind these support/resistance lines so that I can calculate these numbers by myself? There must be some universal and simple calculation this indicator is using.
Here is the "TradePlan" for this past Wednesday:
The tradeplan as illustrated by red and green support/resistance lines for the past week:
Thanks!
Can you help answer these questions from other members on NexusFi?
Yes! Exactly what I was thinking. The formula for Pivot Points is:
H+L+C / 3
H= Previous day High
L = Previous day Low
C = Close
However, the formula that this indicator is 1-3 points off from the regular Pivot Point formula (I tried to reverse engineer the formula over 30 days but its always a few points off). I'm thinking that the High and Low elements are the same but the "Close" element is different - meaning that maybe its using the weighted average of the last 15 mins of trading as opposed to the last tick or something to that effect, but I haven't been able to find the answer.
The source code will not reveal the answer. The indicator itself does not calculate the lines and ranges. Instead, a person who I pay uploads them and the indicator merely displays them on my chart.
Thanks for trying though. Open to more suggestions.
Yeah, that's what I was going to say - there's more than one formula. Floor, Camarilla, Woodie.
Maybe what they do is they calculate more than one formula for daily pivots and s/r and for weekly or even monthly pivots and s/r + yesterday/prev week/prev months highslows/closes, then they just smash it all on one chart and look for levels where there is a confluence of more than one line.
Like if Floor pivot says 1985 is daily R1 and Woodie says 1982 is daily R2 and 1986 is previous week's high then they average it out to 1984 and call it a strong resistance = sell level.
If you're trading a CME product, you could also try substituting the daily settlement price in place of the close and see if that gets you any closer. Settlement prices are available from the CME website. Good luck.
