Investing & Trading

Persons Pivots Study

By Samantha Baltodano


TL;DR:

Person's Pivots is a pivot points indicator that helps traders identify key levels of support and resistance. It uses a traditional method of calculating weekly and monthly pivot levels to determine the support and resistance levels. 


The indicator can be used to identify three types of markets: bullish, bearish, and neutral. Traders use Persons Pivots to identify potential trade opportunities based on market conditions, such as a buy signal if the price breaks through the resistance level in a bullish market, or a sell signal if the price breaks through the support level in a bearish market.


Test the strategy on TradingView here!



What Is The Persons Pivots Study?

Technical analysis is a popular method used by traders to analyze market trends and make informed trading decisions. 


One of the most important tools in technical analysis is the pivot points indicator, which helps traders identify key levels of support and resistance. 


Among the various pivot point indicators, Person's Pivots stands out as a reliable and effective tool for technical analysis.


Person's Pivots is a variation of the Pivot Points study, which was originally developed by floor traders in the commodities markets to identify key levels of support and resistance. 


Person's Pivots, like the original Pivot Points, plots one support level and one resistance level on the price chart. However, it differs from the original in that it uses a different method to determine the support and resistance levels.



Calculation

Person's Pivots Indicator is calculated using the traditional way of calculating weekly and monthly pivot levels. 


These levels are calculated at the beginning of the week or month and remain constant for the entire period. 


To calculate the support and resistance levels, the formula is as follows:


  • Resistance level 1 (R1) = (2 x pivot point) - low
  • Support level 1 (S1) = (2 x pivot point) - high
  • Resistance level 2 (R2) = pivot point + (high - low)
  • Support level 2 (S2) = pivot point - (high - low)


Where:

Pivot point = (high + low + close) / 3



Trade Signals

Person's Pivots Indicator can be used to identify three types of markets: bullish, bearish, and neutral. 


  • In a bullish market, the support level is S1 and the resistance level is R2. 
  • In a bearish market, the support level is S2 and the resistance level is R1. 
  • In a neutral market, both support and resistance levels are S1 and R1, respectively.


Traders use the Person's Pivots Indicator to identify potential trade opportunities based on the market conditions. 


For example, if the market is bullish and the price breaks through the resistance level, it is considered a buy signal. Conversely, if the market is bearish and the price breaks through the support level, it is considered a sell signal.



Test The Persons Pivots Study

Great news! 


You can back test this exact strategy on historical data for any of your favorite symbols using TradingView. 


This strategy has already been built and all you have to do is log in and take it for a spin. You can access this indicator here.


If you’re new to back testing and to TradingView, don’t worry. I created a step-by-step guide you can follow to begin testing the Persons Pivots.



Summary

  • Person's Pivots is a pivot points indicator used in technical analysis to identify key levels of support and resistance.
  • The indicator plots one support level and one resistance level on the price chart, using a different method to determine the support and resistance levels than the original Pivot Points.
  • Person's Pivots is calculated using the traditional way of calculating weekly and monthly pivot levels and remains constant for the entire period.
  • It can be used to identify three types of markets: bullish, bearish, and neutral, with different support and resistance levels for each.
  • Traders use Persons Pivots to identify potential trade opportunities based on market conditions, such as a buy or sell signal when the price breaks through the support or resistance level.


Persons Pivots is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.


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