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Hey guys, I use to trade in forex
and I've been
developing my own pivots indicator. The software which I use doesn’t have the
feature built-in and I like to calculate weekly pivots.
how should
I handle non-trading days in a week (e.g. public holidays) - say a week has 1
non-trading day, so now is the pivot calc based on 4 days or does it stick with
a 5 day lookback (i.e. assume every 5 daily bars make up a week). If there are
2 holidays in one week is the pivot then based on 3 days and so on?
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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wlaubach wrote:Hey guys, I use to trade in forex and I've been developing my own pivots indicator. The software which I use doesn’t have the feature built-in and I like to calculate weekly pivots.
how should I handle non-trading days in a week (e.g. public holidays) - say a week has 1 non-trading day, so now is the pivot calc based on 4 days or does it stick with a 5 day lookback (i.e. assume every 5 daily bars make up a week). If there are 2 holidays in one week is the pivot then based on 3 days and so on?
This is one of those "length of string questions" and the answer is usually a personal preference dependent on how the individual trader considers time (or if they consider time important at all?) I don't think you'd ever get a unanimous agreement (actually, I reckon if you ask five traders about this topic, they'd give you six different answers [:)] ) If you want to align with "common time" theories then your weekly pivots would be based on calendar weeks, regardless of holidays etc. If you are not considerate of the calendar, you might base your pivots on the past x-trading days, regardless of the calendar week in which they occurred. I have seen different traders trying to get different edges over the market by changing the "time sequence" of their charts; sometimes it works, sometimes it does not. Some traders are not considerate of elapsed time, such as Renko, P&F etc chartists. (One guy I know uses daily charts in his equities trading, but his "day" is measured from 12:00 to 12:00 instead of his exchange "norm" of 10:00 to 16:00!) What you do is up to you. Experiment and see what works for you. wabbit [:D]
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