DeMarker Pivot

De Marker Pivot is a useful VertexFX client side VTL indicator, provides the support and resistance levels, and daily trading bands for intraday trading. It is calculated from the previous day’s range – namely previous day’s High, Low, and Close.

The indicator values are calculated as follows :
P = (Previous Day High + Previous Day Low + Previous Day Close ) / 3
R1 = 2 * P – Previous Day Low
S1 = 2 * P – Previous Day High
R2 = P – S1 + R1
S2 = P – R1 + S1

The DeMarkerPivot provides intraday traders with two support levels, and two resistance levels. In a sideways market, the price is bounded within S1 and R1 ranges, and during higher volality sideways markets within S2 and R2. Therefore traders typically place stop-loss for BUY trades below the S1, and for SELL trades above R2.

In sideways markets, traders typically enter BUY trades around S1 level, and exit their BUY trades around R1 level. Likewise, SELL trades are initiated around R1 levels , and these trades are exited around S1 level. Whenever the price is outside of these bands, it implies that the probability of the market initiating a new trend is very high.

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:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.