Quote Originally Posted by adam ali View Post
Billy,

Stockcharts.com have recently instituted pivots on their charts. In their blog, they list their standard pivot calculation as the following:

Pivot Point (P) = (High + Low + Close)/3

Support 1 (S1) = (P x 2) - High

Support 2 (S2) = P - (High - Low)

Resistance 1 (R1) = (P x 2) - Low

Resistance 2 (R2) = P + (High - Low)

This appears different than the calculation used on this site. If true, do you happen to know why the difference?

Adam
Adam,
I have no idea what they're trying to do. First, using only 2 levels of support and resistance is useless. Second, their computation, even with their formulas are wrong.
They probably are trying to align on freestockcharts because I saw that they added VWAP too.
I don't recommend relying on their pivots as they are displayed now.
Many sophisticated variations of the formulas have been introduced over the years and most were only marketing gimmicks. What I'm sure is that the classic formulas are working perfectly for setup planning purposes so I don't see any use deviating from them. Stockcharts is an excellent technical analysis resource, but not a very good trading resource.
Billy