Scanning for Stocks around their Pivots.

twtraapl

Hi,

I wanted to know if i could somehow use these formulas to scan for stocks around a certain pivot point. Is it possible to use the advanced workbench to achieve this.

Pivot Point (P) = (High + Low + Close)/3

Support 1 (S1) = P - {.382 * (High - Low)}

Support 2 (S2) = P - {.618 * (High - Low)}

Support 3 (S3) = P - {1 * (High - Low)}

Resistance 1 (R1) = P + {.382 * (High - Low)}

Resistance 2 (R2) = P + {.618 * (High - Low)}

Resistance 3 (R3) = P + {1 * (High - Low)}

markd

The Technical Indicators drop down does not have entries for Pivot Point or S1, R1, etc. so the scan engine will not calculate those points for you.

However, the scan engine can find highs and lows, and it can do the math, so if you want to do some work, you can recreate those points as scan conditions.

Note that support and resistance points can be (usually are) outside the range of the current bar's highs and lows, so you have to use a prior bar. Which you use depends on your time frame (see the Chart School article on Pivot Points).

If you are trading intraday, and run the scan intraday, you would use yesterday's high low and close:


// close greater than Pivot point (daily data for intraday)
and [close > [1day ago High + 1 day ago Low + 1 day ago Close] /3]

// close less than Support 1 (daily data for intraday)
and [close < [ [1 day ago High + 1 day ago Low + 1 day ago Close] /3 ] - [.382 * [1 day ago High - 1 day ago Low]] ]


If you are trading overnight (holding for more than one day), you would use the prior week's high, low and close. You could run the scan intraday or after the close during the week.

// close greater than Pivot point (weekly data for daily or intraday)
and [and [close > [1 week ago weekly High + 1 week ago weekly Low + 1 week ago weekly Close] /3]


// close less than Support 1 (weekly data for daily or intraday)
and [close < [ [1 week ago weekly High + 1 week ago weekly Low + 1 week ago weekly Close] /3 ] - [.382 * [1 week ago weekly High - 1 week ago weekly Low]] ]

I'll let you build the rest of them. You should be able to just plug in the multipliers and/or change the signs for each S and R level. Don't mess with the parentheses - they are kind of a bear when you do calculations like this. You should verify by adding Fib Pivot Points to your chart style (put an F in the parameters box).

markd

For intraday scans, you could try using the "x" operator in place of the ">" and/or "<" comparison operators. I'm not sure what scan engine would do with that in real time.

"x" means cross above - for the first time in the time frame. So, its not just close above (i.e. greater than), but the first time it's closing above. If you were running against daily data after the close, and the current close was the second daily close above, say R1, you would not get hit.

But if you are running against intraday updates, and as of the time you run the scan intraday, close crossed above R1 two intraday updates ago, will it give you a hit?

I think it should, because I think it considers the most recent intraday update as the ONLY close, so no matter how many intraday updates ago the close crossed R1, it would be the first one. So, probably no point using "x" in intraday scans instead of ">" or "<".

On the weekly scale though (using last week's HLC to find pivots) you probably could use "x" to avoid getting duplicate hits. If you do that, then for crossing BELOW S1, etc. the S1 condition has to come first, so that S1 crosses above close, so it would be.. and [ S1 x close], not .. and [close x S1].

twtraapl

Thank you mark. I am trying them out now. Thanks so much for your help.

swagjunkie

I have tried these out and found they match up with weekly close and not the daily close.