I was playing around with several pivot point indicators today, and i would like to share some of my thoughts.
First of all i want to tell that i like using pivot points, i don
t know why, but the do nicely represent support and resistance levels, and the primary target for the next day ( the pivot line itself ) . Right now i am thinking of some ways of trading using the pivot points ( not traditional ones , but i am thinking of something new , maybe you guys also have some ideas ? )
Anyway, here is a crazy thought. Everyone calculates pivot points using today
s daily data to have levels for the next day. Am i right or am i right ? =) , so basicly we are taking a daily candle, and using its data to see S/R levels for the next dauly candle. But why to use daily when we can use Hourly? Or 12 hourly data? Or the ohlc data of any time period we want. If we have the ohlc of this period, we can calculate pivot points for the next period with this lenght. They could be more accurate, and effective for traders.
So here is an idea for an indicator, there is a uservar : BarCount , it is the amount of bars that the indicator should take ohlc from, for example:
We take this indicator, add it to a hourly chart, put in a uservar 30 , and it calculates pivot points for the next 30 bars using ohlc of the last 30 bars. I hope i am making myself clear ( which could be not true, since it was a hard day and it is kinda late ) .
And it would be more better if this indicator could also plot pivot points for every 30 bars in the past, so that backtesting could be done.
Is this possible in MT4 ? Is it difficult ? maybe someone could try coding this thing ?