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2014issue C1157-58

Next-session pivot support and resistance from daily bars

A completed daily bar is rebuilt into one central pivot and six rails that belong to the following session. The map is drawn from end-of-day values, then read against the session that comes after.

  • The pivot-point is the arithmetic mean of a completed daily bar's high, low, and close, and it is the origin for the derived rails.
  • Support-resistance here is three resistance rails and three support rails computed from that pivot plus the same bar's high and low, then assigned to the following session.
  • A daily-range-gate withholds the next-day map unless high, low, and close are each greater than zero and the daily range is strictly greater than zero.
  • Next-session-shift applies yesterday's completed daily calculation to today's intraday bars so the map and the session being observed are not the same bar.
Entries in this reading2 entries
Current trackPivot point45 readingsSupport and resistance170 readings

A finished daily bar becomes the next-session map

The central pivot is the arithmetic mean of a completed daily bar's high, low, and close. Three resistance rails and three support rails are derived from that pivot together with the same bar's high and low.

When the inputs are the current end-of-day high, low, and close, the resulting levels belong to the following session, not the bar that produced them. The pivot-point is that next-session reference price. Support-resistance is the six rails computed from it and then assigned to the following session.

How the six rails are derived

The first resistance equals twice the pivot minus the prior low, and the first support equals twice the pivot minus the prior high.

The second resistance equals the pivot plus the prior high-minus-low range, and the second support equals the pivot minus that same range.

The third resistance equals twice the pivot plus the prior high minus twice the prior low, and the third support equals twice the pivot minus twice the prior high plus the prior low.

When a next-day set is emitted

A next-day level set is emitted only when high, low, and close are each greater than zero and the daily range is greater than zero. That daily-range-gate withholds the map unless those conditions hold, including a daily high-minus-low range that is strictly greater than zero.

Because the inputs are daily end-of-day values, the same calculation is not a live overlay on the session that produced those values.

Shifting the map onto the next session

On a historical chart the six rails can be drawn on the next session's intraday bars after shifting the daily result by one day, as in a 60-minute stock-index futures example that uses the prior daily bar. Next-session-shift is that step: yesterday's completed daily calculation is applied to today's intraday bars so the map and the session being observed are not the same bar.

The accompanying display routine is described as a chart overlay of the constructed levels, not as a trading system.

Next-session pivot rails for major indexes, 11 Sep 2014

End-of-day bars on 10 Sep 2014 are rebuilt into a central pivot and six next-session rails for 11 Sep. SPX is the primary map; INDU, NDX and the Russell 2000 sit on the same grid so a trader can see how far each rail sits from yesterday’s close. Values are taken from the AIQ PriceProjEDS NextDayLevels table, not from the chart screenshot.
End-of-day bars on 10 Sep 2014 are rebuilt into a central pivot and six next-session rails for 11 Sep. SPX is the primary map; INDU, NDX and the Russell 2000 sit on the same grid so a trader can see how far each rail sits from yesterday’s close. Values are taken from the AIQ PriceProjEDS NextDayLevels table, not from the chart screenshot.SPX, INDU, NDX, RUT · next session after 10 Sep 2014 daily close · 2014-09-10T00:00:00.000Z to 2014-09-11T00:00:00.000Z

Levels are computed from the completed 10 Sep 2014 daily bar (P=(H+L+C)/3, then R1–R3 and S1–S3) and are meant for the following session only.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
25 of 38 in the Pivot point track
201459-60 pp.Next on Pivot pointConstructing session pivot rails from the prior-day rangeA pivot-rail is constructed from ratios of the previous day’s high, low, and close and treated as candidate support or resistance on the current session.
All readings on this track · 38 readings
  1. 1988Constructing action-reaction lines from two pivots
  2. 1988Constructing intradaily point-and-figure boxes and pivot ladders
  3. 1991Constructing layered support and resistance from swings, pivots, and retracements
  4. 1994Three locks on a day-session order, then a staged exit
  5. 1994Building a five-level daily pivot grid
  6. 1996Constructing daily pivot points from session prices
  7. 1996Higher time frame balance points as a trend and band filter
  8. 1998Cup-with-handle construction rules
  9. 2000Pivot levels as a daily trade hypothesis
  10. 2001Construct a same-session polarity card around the daily pivot
  11. 2001Trading inside the cup-with-handle before the breakout
  12. 2005A lower-low rebound as one entry, abstention, and stop routine
  13. 2006Constructing session pivot maps from the prior high, low, and close
  14. 2006Constructing a pivot grid for stops and buy-stops
  15. 2006Monoparametric automatic trendline construction
  16. 2008Write the exit before the entry
  17. 2010Dynamic-pivot range grids for trend bias
  18. 2010Reverse-entry exits for pairs, pivots and support
  19. 2011Sequencing pairs, futures pivots, and implied volatility
  20. 2013Constructing Camarilla levels from prior range
  21. 2013Camarilla levels as a multi-timeframe map of reversion and breakout
  22. 2013Constructing a camarilla-grid from a completed lookback range
  23. 2013Constructing daily pivot support and resistance rungs
  24. 2014Constructing daily pivot levels from prior-session OHLC
  25. 2014Next-session pivot support and resistance from daily bars
  26. 2014Constructing session pivot rails from the prior-day range
  27. 2014Evaluating moving-average, pivot, and support-resistance filters
  28. 2016Stage a Trailing stop toward a planned target
  29. 2016Smoothed RSI and full-cut pivots for option-income exits
  30. 2017Constructing a weekly seasonality pivot scaffold
  31. 2017Seasonality and pivot points as scenario maps, not forecasts
  32. 2018Wave pivots, strength filters, and option premium
  33. 2018Constructing Fibonacci and daily pivot support maps
  34. 2018Building a daily pivot lattice with Fibonacci rails
  35. 2019Prior-session pivot channels for same-day entries
  36. 2019Constructing intraday pivot channels from prior-session levels
  37. 2020Variable-strength pivot highs as falsifiable entry filters
  38. 2020A high-volume-pivot long after a multi-week decline
By fieldTrend and channels181 readingsBy year201489 readings
All 45 readings tagged Pivot point
Also on Pivot point5 readings
1988Constructing intradaily point-and-figure boxes and pivot ladders1991Constructing layered support and resistance from swings, pivots, and retracements1994Building a five-level daily pivot grid1996Higher time frame balance points as a trend and band filter2000Pivot levels as a daily trade hypothesis