2006issue C031-2
Constructing session pivot maps from the prior high, low, and close
Before the next session, freeze the last completed high, low, and close into a five-level pivot ladder. Those lines give later breaks and rejections a short-horizon map that can be proved wrong, and the levels are rebuilt when news rewrites the range.
- A session pivot is the average of the prior period's high, low, and close, treated as the price at which that day's market direction is treated as changing.
- The finished map has five numbers. The pivot plus first resistance and first support are the primary three, and second resistance and second support mark extended conditions used for exits.
- A move through the pivot is only a bullish or bearish session bias. New participation is associated with breaks of first resistance or first support, not with the pivot break alone.
- Market-moving news voids the precomputed levels, so the high, low, and close are rebuilt. In a 24-hour market a consistent session close must be locked first.
A map drawn before the session
Editorial reading: treat the five-level pivot ladder as pre-open homework. Freeze the last completed high, low, and close into lines. Later breaks and rejections can prove those lines wrong. Retire the map when news rewrites the range.
A session pivot is the price at which that day's market direction is treated as changing. It is built from the prior period's high, low, and close. The pivot point is the average of those three prints: their sum divided by three. In the fixed terms, that average is treated as the session's directional hinge.
Five numbers from one completed range
First resistance equals twice the pivot minus the prior low. First support equals twice the pivot minus the prior high. First resistance is the nearer upside level formed by reflecting the prior low through twice the pivot. First support is the nearer downside level formed by reflecting the prior high through twice the pivot.
Second resistance adds the distance between first resistance and first support to the pivot. Second support subtracts that same distance from the pivot. Those farther bands are the last levels in the construction. The method is not carried past second resistance and second support.
The finished set has five numbers. The pivot plus first resistance and first support are treated as the primary three. The map is described as a short-horizon guide for the next session. The same construction can be run on an intraday, daily, weekly, or monthly completed range, not only on a single trading day.
What a break is allowed to mean
A move through the pivot is read as a bullish or bearish session bias. A pivot break alone is not treated as a complete buy or sell signal. New participation is associated with breaks of first resistance or first support.
Second resistance and second support are treated as extended conditions used for exits.
Editorial reading: keep break versus rejection in view at every constructed line. A push through a level is a break. A touch that fails to continue is a rejection. Use that contrast to read continuation or reversal against the pre-open map, not as a complete trade instruction.
Lock the clock before the prints
In a 24-hour market the constructor must lock a consistent session close before the inputs are valid. Session convention is that fixed clock. It decides which high, low, and close feed the formula. Desks may follow a broker's official close or a self-chosen 24-hour window.
All readings on this track · 38 readings
- 1988Constructing action-reaction lines from two pivots
- 1988Constructing intradaily point-and-figure boxes and pivot ladders
- 1991Constructing layered support and resistance from swings, pivots, and retracements
- 1994Three locks on a day-session order, then a staged exit
- 1994Building a five-level daily pivot grid
- 1996Constructing daily pivot points from session prices
- 1996Higher time frame balance points as a trend and band filter
- 1998Cup-with-handle construction rules
- 2000Pivot levels as a daily trade hypothesis
- 2001Construct a same-session polarity card around the daily pivot
- 2001Trading inside the cup-with-handle before the breakout
- 2005A lower-low rebound as one entry, abstention, and stop routine
- 2006Constructing session pivot maps from the prior high, low, and close
- 2006Constructing a pivot grid for stops and buy-stops
- 2006Monoparametric automatic trendline construction
- 2008Write the exit before the entry
- 2010Dynamic-pivot range grids for trend bias
- 2010Reverse-entry exits for pairs, pivots and support
- 2011Sequencing pairs, futures pivots, and implied volatility
- 2013Constructing Camarilla levels from prior range
- 2013Camarilla levels as a multi-timeframe map of reversion and breakout
- 2013Constructing a camarilla-grid from a completed lookback range
- 2013Constructing daily pivot support and resistance rungs
- 2014Constructing daily pivot levels from prior-session OHLC
- 2014Next-session pivot support and resistance from daily bars
- 2014Constructing session pivot rails from the prior-day range
- 2014Evaluating moving-average, pivot, and support-resistance filters
- 2016Stage a Trailing stop toward a planned target
- 2016Smoothed RSI and full-cut pivots for option-income exits
- 2017Constructing a weekly seasonality pivot scaffold
- 2017Seasonality and pivot points as scenario maps, not forecasts
- 2018Wave pivots, strength filters, and option premium
- 2018Constructing Fibonacci and daily pivot support maps
- 2018Building a daily pivot lattice with Fibonacci rails
- 2019Prior-session pivot channels for same-day entries
- 2019Constructing intraday pivot channels from prior-session levels
- 2020Variable-strength pivot highs as falsifiable entry filters
- 2020A high-volume-pivot long after a multi-week decline