Daily Pivot Targets

Daily Pivot Targets indicator is a VertexFX client side VTL indicator, that provides support and resistance pivots, based on daily price values. This indicator is very useful to determine daily limits of trading, and the levels at which the market will enter into resistance and support zones.
It provides three support levels (S1, S2 and S3) and three resistance levels (R1, R2 and R3) along with the daily pivot level.

The levels of this indicator are presented in three colors, green, blue and red (by default). Green level – is the level of resistance, red level – the level of support, and blue level – a level Reversal Pivot.

To calculate these levels, we first calculate the previous week’s range, which is previous week’s High minus previous week’s Low. The calculations for P, R1, S1, R2, S2, R3 and S3 are as follows :

P = ( High + Low + Close) / 3
R1 = 2 x P – Low
S1 = 2 x P – High
R2 = P + (High – Low)
S2 = P – (High – Low)
R3 = 2 x P + (High – 2 x Low)
S3 = 2 x P – (2 x High – Low)

The daily prices tend to stay within the S3 and R3 band. So, reversal strategies can be employed between S3 and R3. The trade can expect the direction to reverse at support and resistance levels. When the price touches the support level, it will bounce above, and when the price reaches the resistance level it falls back.
Breakout strategies can be employed beyond S3 and R3. When the price breaks above R3 or below S3 decisively with volume, stop losses should be engaged, and the trade should consider trading in the direction of the breakout.

The horizontal green line defines the start of the current day. In the upper left corner of the chart it shows the range of the price of the symbol for today, yesterday, this week and this month.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.