The rolling daily pivot was suggested as a trend filter by Mark B. Fisher in his book The Logical Trader. By taking the highest high, lowest low of the past N-days and the close/settlement of the current regular session, we arrive at the rolling pivot levels. You may also want to review the Library vs. Premium Pivots features and watch an intro video here.
Indicator Description
If the market trades above the rolling daily pivot, we’re in an uptrend, if it’s below, we’re in a downtrend. The ideal trade entry will be in the direction of the major trend when the market retraces towards the daily rolling pivots value area, typically represented by a 3 day rolling pivot range, i.e. the Directional Pivot (DP), Central Pivot (CP) and the Main Pivot (PP).
The Rolling Pivots Daily indicator should be used in combination with other tools for technical analysis, such as a trend bias, momentum oscillators, support / resistance and volume indicators. For trend analysis you may review the ADX, Heikin Ashi, MA Cross, or the Rainbow Filter. Library momentum oscillators include among others the Acceleration Deceleration, Awesome Oscillator, LBR 3/10 Oscillator, Slow RSI or the TDI. The Indicator Spotlight newsletter reviewed the TDI indicator here. For volume analysis you may review Better Volume, Force Index or the Relative Volume indicator.
Other Library indicators
Other rolling Pivot indicators available from the Session Tools category include the Rolling Pivots Weekly and Rolling Pivots Monthly. The LizardTrader blog has further information on the use of rolling pivots for trend detection.
This category also features the Hourly Pivots, Pivots Daily, Pivots Weekly, Pivots Montly and the Pivots N-Monthly indicators. Finally the library contains Camarilla Daily Pivots, Camarilla Weekly Pivots, Camarilla Monthly Pivots and the Camarilla N-Monthly Pivots. A quick introduction to Mark Fisher’s application of the Pivot Point indicator in relation to the Opening Range is found in our Indicator Spotlight. Our Premium Suite also features the Session Pivots Package.
The Indicator Library also has a category with Fibonacci indicators, including the Prior Day Fibonacci Levels, Current Week Fibonacci Levels / Prior Week Fibonacci Levels, the Current Month Fibonacci Levels / Prior Month Fibonacci Levels and the Current N Month Fibonacci Levels / Prior N Month Fibonacci Levels. Our Indicator Spotlight also discussed Fibonacci Retracement Levels specifically. Additionally, this category also contains the Fibonacci Bands indicator.
The Rolling Pivots Daily indicator is available for NinjaTrader 8 and is compatible with our LizardRenko bars.
