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Tutorial 220 | A simple program to calculate traders’ pivots

T220-1
A Gold Pass member asked how to create a super simple program to calculate traders’ pivots using as inputs the highest high, lowest low and close of whichever period is being analyzed.
 
Whereas the standard Floor Trader Pivots program calculates the values for each period (day or session, depending on user input) and then plots the levels based on the previous day or session.  This tutorial program calculates the levels once and then plots these levels for the whole chart based on the user inputs for high of one period, low of this period and close of this period.
In this screen shot, the tutorial program is plotting the thicker lines and the standard Traders Pivot program, the thinner lines
In this screen shot, the tutorial program is plotting the thicker lines and the standard Traders Pivot program, the thinner lines

Traders’ pivots, or pivot points, are technical analysis indicators calculated using the previous trading period’s high, low, and closing prices to identify potential support and resistance levels for the current trading session. The central pivot point is typically calculated as the average of these three values, with additional support levels (S1, S2, S3) projected below and resistance levels (R1, R2, R3) projected above using various formulas.

These levels are particularly useful because they provide objective, predetermined price points where traders anticipate potential reversals, breakouts, or increased trading activity.

Floor traders originally developed pivot points for quick intraday decision-making, but they’ve become widely adopted across different timeframes because they offer a systematic framework for identifying entry and exit points, setting stop-losses, and gauging overall market sentiment—when price is above the central pivot, sentiment is generally considered bullish, and bearish when below.

Their self-fulfilling nature also adds to their effectiveness, as many traders watching the same levels can create actual support and resistance through their collective actions at these price points.

Tutorial 220 user inputs
Tutorial 220 user inputs
The style settings are adjusted in the indicator dialog
The style settings are adjusted in the indicator dialog

Explanation of tutorial 220

Free download for Gold Pass members

Download the tutorial 220 TradeStation EasyLanguage example indicator free for Gold Pass members. If you are a Gold Pass member you can download the tutorial code below, please make sure that you are logged in with your Gold Pass user name and password. This content is for members only.

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ANY EASYLANGUAGE OR POWERLANGUAGE TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (AND PARTS THEREOF) AND ASSOCIATED TECHNIQUES REFERRED TO, INCLUDED IN OR ATTACHED TO THIS TUTORIAL OR PROGRAM DESCRIPTION ARE EXAMPLES ONLY, AND HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES. MARKPLEX CORPORATION. DOES NOT RECOMMEND THAT YOU USE ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (OR ANY PARTS THEREOF) OR TECHNIQUES. THE USE OF ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS AND TECHNIQUES DOES NOT GUARANTEE THAT YOU WILL MAKE PROFITS, INCREASE PROFITS, OR MINIMIZE LOSSES.