2007 Mar 20 - Tue

Peak Selection, Pivot Analysis, and Fibonacci

Sometimes it takes a while to realize that how various things work together. The light has dawned. I wrote some code to do peak detection a while ago. By using this tool over multiple time frames, and associating Fibonacci intervals on the advancing lines, one can automatically search out possible turning points. A CBOT article called Trading the CBOT mini-sized Dow - Master Technician Techniques provides the ground work for how this would be done from an analytical perspective. These possible Fibonacci turning points can be strengthened if some of them overlap calculated pivot points. Further strengthening is achieved if Fibonacci turning points occur at the same location over multiple time intervals. As the author, John Person, says in the article, "Combining Pivot Point numbers with the Fibonacci analysis we have a much better outlook and confirmation of Support and Resistance targets."

CBOT has some links to additional strategies.

In an article at National Futures, writes an additional article on Using pivot points to predetermine support and resistance price levels. He ties them in with the TRIN, TICK, and VIX indicators along with a reference to candlesticks.