Not really an indicator of pivot points, I think it would be fair to say – more a generic recipe for predicting high and low in the coming period.

Where H = previous high, L = previous low, O = open, and C = close

(if C > O_new) x = 2H + L + C
(if C < O_new) x = H + 2L + C

New High = x / 2 – L
New Low = x / 2 – H

Simple enough, and nobody would suggest its use in isolation – what analytical tool could be used in isolation? – and probably a consensus opinion is that it has a better record in a ranging market and definitely over a longer periodicity as opposed to shorter.

One Response to “Tom DeMark Pivot Point System”

1. Forex » Tom DeMark Pivot Point System says:

   October 23, 2008 at 9:38 am

   Simple enough, and nobody would suggest its use in isolation – what analytical tool could be used in isolation?

   Reply