The rolling daily pivot was suggested as a trend filter by Mark B. Fisher in his book The Logical Trader. One may also create rolling monthly pivot levels by taking the highest high, lowest low of the past N-months and the close/settlement of the current month in order to create rolling monthly pivot levels.
Indicator Description
If the market trades above the Rolling Pivots Monthly, we can assume we’re in an uptrend, whereas if it’s below, it will be in a downtrend. The ideal trade entry will be in the direction of the major trend when the market retraces towards the value area as represented by the rolling monthly pivot range, namely the Directional Pivot (DP), Central Pivot (CP) and the Main Pivot (PP).
The Rolling Pivots Monthly indicator is best used in combination with additional tools for technical analysis such as channel indicators, momentum oscillators, support / resistance levels and volume analysis. For channel indicators, you may review the Commodity Channel Index, Donchican Channel or the Squeeze Channel. A Donchian Channel Strategy was reviewed in our Indicator Spotlight, as was the Squeeze Momentum setup. Furthermore, the Indicator Spotlight looked at how the Ichimoku Cloud can be used for trend and momentum entries. A library version of the Ichimoku indicator is also available.
Our advanced oscillators category also features the Laguerre RSI. The standard momentum oscillator category furthermore has a new an improved version of the standard Relative Strength Index, the Connors RSI, Fast Stochastics and the Traders Dynamic Index (TDI). Additional info on the TDI indicator, which applies the RSI to three timeframes, was also discussed our Indicator Spotlight.
Other Library indicators
For volume you may consider Force Index or Relative Volume analysis. Our NinjaTrader Relative Volume indicator was discussed in our Indicator Spotlight. For instruments that lack reliable volume information (FX/Crypto currencies), you may consider analyzing Relative Ranges. Our Relative Range indicator was also reviewed in the Indicator Spotlight.
Other rolling Pivot indicators available from the Session Tools category include the Rolling Pivots Daily and Rolling Pivots Weekly. Our LizardTrader blog has further information on the use of rolling pivots for trend detection. The Session Tools category also features Hourly Pivots, Pivots Daily, Pivots Weekly, Pivots Montly and the Pivots N-Monthly indicators. Mark Fisher’s application of the Pivot Point indicator in relation to the Opening Range was summarized in our Indicator Spotlight.
Furthermore, you may consider Camarilla Daily Pivots, Camarilla Weekly Pivots, Camarilla Monthly Pivots and the Camarilla N-Monthly Pivots. Finally, the library also contains average daily range levels for determining support / resistance levels. Our Indicator Spotlight discussed the Daily Range Projections and the Weekly Range Projections / Monthly Range Projections are also available from our Volatility Indicators category.
The Rolling Pivots Monthly is available for NinjaTrader 8 and is compatible with the LizardRenko bars. Our Premium Suite also features the Session Pivots Package.
