The Central Pivot Point Indicator overlays the Price Chart and depicts the Central Pivot Point (equilibrium price point) around which trading is expected to occur. The calculation for the Central Pivot Point is the average of yesterday’s High, Low and Close; where C[1] is yesterday’s closing price, H[1] is yesterday’s high and L[1] is the period’s low, the Central Pivot Point for today is calculated as:
Central Pivot Point = (H[1] + L[1] + C[1]) / 3
The term “yesterday” figuratively represents a specific number of days in the past leading up to today, and is specified through the Periods parameter (see below).
|
Parameter |
Description |
|
L1 |
The color of the line representing the Central Pivot Point. |
|
Periods |
The number of rolling periods [e.g., Historical (days), Intra-day (minutes, hours, etc.)] considered in the Central Pivot Point calculation. The default value is 10. |