Tuesday, February 10, 2009

Qs Pivot Bands

This is some continuing work on the weekly QQQQ pivots that I began last Sept 2nd. A little thumbnail explanation of what I was trying to accomplish with these studies is shown here. If this is something that interests you, I'd advise rewinding back to my Sept 2nd post and reading some of the subsequent postings and weekly updates to the pivot file. Probably 75% of my daytrading gains are achieved using only the daily pivots, the NYAD, the parabolics and the 8/16 MA cross on 2 and 5 minute bars, so the pivots are really fundamental to my bottom line and I'm always looking for ways to squeeze a little more juice out of them.

The chart at the top is simply a line diagram of the weekly R4-S4 pivots from 7/3 until the present. The lower excel matrix is a continuing work in progress to configure some forecasting metrics based on the pivot dynamics. If you take the time to review the previous pivot related posts you'll notice the slope convergence/divergence posts as indicators of market momentum and those turned put to be modestly correct.

Above is a simple weekly bar line chart of the PP and R1-S1 progressive delta for the same time frame. The calculations are simply the result of dividing the previous week's PP (series 1) and R1-S1 delta (series 2) by the current values. mean values therefore =1, reflecting no change and no volatility. The indicator is currently (no surprise) oversold. This is clearly a work in progress but preliminary studies have encouraged me to pursue system applications yet to come.


Cuccaa said...

Gee minnie christmas, I just remotely START to try and comprehend what you do, and you change the game plan again, GEEZE!!

bzbtrader said...

Oh Clueless One,
Any failure on your part to comprehend what I'm doing is not your fault but mine for not elucidating it better. Believe it or not, this stuff ain't that complicated. It's really just a matter a putting on a different set of googles to look at the same old data fields. You know I'm only a phone call away whenever you're up for a real chat (but not Friday nights).