Pivots Calculation

[Devside_Victor]

Hello everyone,

I am having some problems in understanding how the Pivots Indicator works.

From my understanding the pivots indicator should be using the last close value from the previous period (Pivot1.png) but it uses the close value in the middle of the chart (Pivot2.png).

Can someone explain to me why the Indicator uses 1.2113 instead of 1.21189?

Also attached are the settings for the data series and the pivots indicator.

Thank you.

Kind Regards,
Victor

[bltdavid]

From my understanding the pivots indicator should be using the last close value from the previous period

Not quite, that should be previous daily period.

Pivots calculations always use High/Low/Close daily prices.

[Devside_Victor]

Hello David,

Thank you for the quick reply.

Isn't the daily close price on bar 23 in the Pivot1.png since it's the last bar of the day?

[NinjaTrader_PaulH]

Hello Devside_Victor,

Thanks for your post.

When using the daily bar the Pivot Point (PP) is calculated from the daily bars High + Low+Close divided by 3.

You may want to create a chart that shows both daily bars and your 60-minute bars to see what the daily bar values are.

For example:

[AMATX]

Daily close is often adjusted after market close to reflect activity on several different exchanges. Therefore, the daily close may not equal the close of the last bar of the day on an intraday chart. This has nothing to do with the charting program(Ninja, TOS, etc.), but is due to the way the exchanges close out prices. I remember running into the exact same issue you brought up several years ago and it drove me nuts until I found this out.

For pivots, you're better off using the 'official' closing price of the period being charted(daily, weekly, monthly, etc.) and ignoring whatever shows up on an intraday chart as the last close of the day.

Sounds hinky, but after screwing around with this over a long period of time, I found out it all works out in the long run...

[Devside_Victor]

Thank you all.

AMATX your answer cleared things up for me.