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JFC Auto Pivot Indicators
The
JFC Auto Pivot Indicator Group consists of three separate indicators, JFC Auto
Pivot Hi, JFC Auto Pivot Lo and JFC Auto Pivot.
Since
all three are very similar in their plots, usage and configuration, I will deal
with them as a group.
This
indicator is for use only on intra-day data. To apply this concept to daily data
use the JFC Daily Pivot Indicator.
Inputs
The
input screen for all three indicators will appear as above.
The
“ALL PLOT” input and the “PLT” input work together to set the
This
indicator plots horizontal lines on the screen which define
Since
these lines are more important when the market approaches
If
the ALL PLOT value is set to 1, the various support and resistance
The
value for the distance discussed above is set by the PLT input.
For
example, if the indicator is applied as above to a Dow Jones
These indicators also conveniently plot text
on your screen at the end
of each trading day which gives you the value for the support and resistance
lines for the next day’s trade. At
the end of the session, the text will be plotted at the far right of the chart
and placed at the price level at which tomorrows support and resistance levels
will appear.
The
following three inputs are used to alter the color and horizontal
The
colors for the text can be set by changing the color values for
Use
the values in the table below to change these text colors.
Black 1 |
Magenta 5 |
Dark Blue 9 |
Dark Red 13 |
Blue 2 |
Red 6 |
Dark Cyan 10 |
Dark Yellow 14 |
Cyan 3 |
Yellow 7 |
Dark Green 11 |
Dark Gray 15 |
Green 4 |
White 8 |
Dark Magenta 12 |
Light Gray 16 |
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Note
that these settings will only effect the color of the text
The
“POS” input will set the position of the text on your screen.
The
final input, TXT, can be used to remove the text from the screen.
Style
The style tab for all three indicators will
be identical with the exception
of the names of the plots which appear. You may reset the
It
is important that the “Type” box be set to “Point” and the “Style”
Scaling
It
is vital to the proper operation of all three of these
The Properties tab
should be set as indicated on the following page. There are no alerts programmed
into this trading tool.
If you recall our past
discussions about other JFC Indicators which are predominately classified into
one of the four groups of day trading indicators, those being indicators
identifying:
1.
Major Trend
2.
Minor Trend
3.
Entry
4.
Exit.
The
JFC Auto Pivot Indicator is a tool designed for traders who prefer working with
pre-calculated support and resistance levels. The argument can be made that
pre-calculated levels whether they be Hi, Lo, or otherwise, have little value in
trading because they to not measure price activity as the market unfolds during
the trading session.
Although
there is truth to this argument, I have witnessed many traders use the concept
of support and resistance and this tool successfully. I believe that it is very
much a matter of personal preference and therefore offer this indicator to
provide the trader with the choice. It is also a useful tool to better
understand the intra-day
dynamics of support and resistance. I encourage you experiment and select the
tool(s) which best suit your personal trading style.
Detailed explanation
about the use of this indicator is also included on videotapes #4 and #5. If you
are interested in using this indicator, it is suggested you review the video
footage before incorporating it into your trading.
The chart below is a 5-minute bar chart of the DOW Futures Contract with the JFC Auto Pivot Indicator applied.
The
PLT input is set to 20, therefore the support and resistance levels appear only
when the price action is within 20 points of the level in question.
Notice
how the market experiences definite support and resistance at the various pivot
levels. It is not uncommon for this type of dynamic to unfold throughout the
trading day.
Point
“A” on this chart demonstrates
how, at the close, the indicator plots the levels for the next day, allowing the trader to pre-plan for the coming session.
The
chart below is the same DOW chart as on the previous page. In this example the JFC
Auto Pivot Indicator’s PLT is set at 400. This means that the support and
resistance lines will appear when the price action is within 400 points form the
various levels.
The
result of this setting is that one is able to quickly evaluate where the market
is trading within the overall range of the 9 different support and resistance
levels, giving the trader a quick perspective of price action.
A
final note, the S2, M1, S1, M2, Pivot, M3, R1, M4 & R2 values that appear on
these charts have been placed here for illustration purposes only. They will not
appear on your screen in real time trading as demonstrated here.