mahkoh
1,065 posts
msg #122236
- Ignore mahkoh |
12/13/2014 5:29:05 PM
Pivot point calculation is a widely used method to determine support and resistance lines on a chart.
For those unfamiliar with the matter: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:pivot_points
It is said that where retail traders tend to use daily pivot points institutional traders are more geared towards monthly values, with the latter of course being the ones that move the market.
True or not, I quite often notice that a security which has dropped in price bounces, or at least stalls, at the monthly S1 line.
The filter below lists stocks that are making a new 10 day low and are within reaching distance of monthly S1 support.
Candidates are sorted so that the biggest decliners are on top; the harder they fall, the harder they may bounce.
There is a requirement for stocks to be above ma(200). It is my experience that support holds more often if the stock is in an uptrend, and if it does slice through it has a better chance to recover.
As SF has a 20 minute delay on data the best way to use this filter is to run it between 10:00 and 11:00, download the CSV and copy it into a Google Finance sheet where one can monitor the distance from the trigger point near realtime.
Play the first bounce or the second if it is within 10 - 15 minutes from the first. The more times it touches support the bigger the risk that it breaks. Take (partial) profits within 20 -40 minutes.
One last thing, but crucial: This filter is set for December 2014 as November had 19 trading days. On January 1st, count the number of trading days in December and adjust the number in the first two set statements accordingly.
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mahkoh
1,065 posts
msg #122249
- Ignore mahkoh |
12/15/2014 12:21:01 PM
An example trade for this filter from today:
Buy APD at 12:00 for 135.50, sell 10 minutes later when it hit resistance at daily S1 at 136.50
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fotchstecker
304 posts
msg #122257
- Ignore fotchstecker |
12/15/2014 6:57:48 PM
Thank you for posting a filter with a rational background, clear parameters on when to run it, and concise suggestions concerning entries.
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mahkoh
1,065 posts
msg #122262
- Ignore mahkoh |
12/16/2014 6:35:19 AM
Glad you like it.
I have made a few adjustments: The filter returned to many stocks so I've moved the minimal price up as we're primarily looking for institutional investors to step in. This group tends to trade higher priced stocks.
There is a column for the 50 ma. Refer to that value in the csv download to check whether the price is also near that moving average and possibly provides extra support.
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fotchstecker
304 posts
msg #122265
- Ignore fotchstecker |
12/16/2014 9:32:02 AM
Very useful. Thanks, mahkoh.
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