Pivots S3 and R3, are they the limit for the day? - Traders Hideout | futures io social day trading
futures io futures trading


Pivots S3 and R3, are they the limit for the day?
Updated: Views / Replies:1,443 / 5
Created: by sam1197 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Pivots S3 and R3, are they the limit for the day?

  #1 (permalink)
TruthSeeker
Canada
 
Futures Experience: Intermediate
Platform: NT, IB
Broker/Data: IB
Favorite Futures: Currency Futures
 
sam1197's Avatar
 
Posts: 55 since Feb 2011
Thanks: 13 given, 12 received

Pivots S3 and R3, are they the limit for the day?

On a day like this where the markets seeing one of the worst days, I thought does the market always respect Pivots S3 and R3 as the daily limits for extension? Did some of you experiment with these tests? It was critical today as I was watching many futures struggling to stop their breakdown at S3.

*********** CLOSED ******************

The best thing to do before attempting to answer a question, PLEASE, read it!


Last edited by sam1197; August 5th, 2011 at 02:12 AM.
Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Answer
This post has been selected as an answer to the original posters question Answer


In my experience that is usually the case but like everything else it's not chisled in stone....I have seen them get surpassed a few times. In those cases the are likely to come back to them at some point. When it comes down to it, like anything else make sure you have some kind of p/a before jumping in....

Reply With Quote
 
  #4 (permalink)
Membership Temporarily Revoked
NYC
 
Futures Experience: None
Platform: graph paper and pencil
Favorite Futures: harp
 
dutchbookmaker's Avatar
 
Posts: 187 since Dec 2010
Thanks: 9 given, 107 received

Pivots are fake numbers that randomly line up because of current volatility vs yesterdays price.

What you are ultimately saying is "intra day volatility will not exceed threshold x"

You can backtest that all you want but you have neither said anything predictive about current volatility OR X so why bother?

I don't know why anyone trades pivots and not just intra day high/lows...It is not that much less signals and you at least know everyone else knows the level without question.

People make businesses though out of selling pivot level + y...even when y is totally random.

I can see though how a trader could use pivots as a filter for price action, but that is assuming you understand the idea that there is as many trades to take a day as there are ticks on your instrument and you need a filter.

Still there though, I don't think it is the best filter..but retail likes things to be more "mystical" than trading just high/lows so that will never catch on.

The less "mystic" setups are, the more obvious you don't know what the fuck you are doing.

Reply With Quote
The following user says Thank You to dutchbookmaker for this post:
 
  #5 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received


dutchbookmaker View Post
Pivots are fake numbers that randomly line up because of current volatility vs yesterdays price.

What you are ultimately saying is "intra day volatility will not exceed threshold x"

You can backtest that all you want but you have neither said anything predictive about current volatility OR X so why bother?

I don't know why anyone trades pivots and not just intra day high/lows...It is not that much less signals and you at least know everyone else knows the level without question.

I might have to disagree with some of this...on forex, yes pivots are no good really but on futures they do have signifigance and are traded around or off off all the time...I make use of them myself and find them of value. I could show you about a million examples.

Reply With Quote
 
  #6 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,652 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary

First of all, there are two different formulas widely spread for the pivots S3 and R3. You are probably referring to the wider pivots. The details can be found in this post.

https://futures.io/elite-circle/3790-ninjatrader-7-toolbox-floor-pivots-10.html#post111003

Further more, you can not expect that price does not move further at any of the pivot levels, whether it is S2, S3, S4 or R4.


The main pivot PP is essentially a proxy for value. All other pivots are range targets based on the volatility of the preceding day.

-> When the preceding day was a narrow range day, the pivots of the next day will cluster together, so price can easily move to S4 or R4

-> When the preceding day was a wide ranging day, the pivot levels of the next day a quite far away from each other and you might consider to add midpivots to your chart


I use pivot levels in conjunction with the average daily range of the last 4 weeks. The average daily range is more useful in determining the area where a daily move will stop, as intraday traders are exhausted.

Reply With Quote
The following user says Thank You to Fat Tails for this post:

Reply



futures io > > > Pivots S3 and R3, are they the limit for the day?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Limit Strategy backtesting based on time of day blenderking NinjaTrader Programming 4 July 2nd, 2016 11:23 AM
effect of gains and losses of previous day on next day tradersam Psychology and Money Management 2 May 18th, 2011 04:35 PM
Debt Limit D-Day Means Tough Choices for President Obama Quick Summary News and Current Events 0 May 16th, 2011 03:00 PM
Calculate GAP (Close of Prior Day, Open of Current Day) bluemele NinjaTrader Programming 16 January 19th, 2011 10:19 PM
Help With CMI Pivots honkin NinjaTrader Programming 20 January 5th, 2011 08:10 AM


All times are GMT -4. The time now is 06:49 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-13 in 0.11 seconds with 29 queries on phoenix via your IP 54.90.92.204