Index Pivots for Monday, February 13

[grems8544]

This is great work, Paul. You might want to check out some of the currencies, as pivots are used by many forex traders. I especially follow the EURUSD and its almost inverse counterpart, $DXY, the USD index.

Interesting. Here's the pair, and looking at it on a 5m chart, it's instructive to watch the prices move through the clusters.

I'll reiterate something Billy pointed out long ago about using indexes with pivots. The calculated index pivots will often diverge from slightly from actual traded instruments because the highs and lows of the index will be slightly off, as they are calculated maybe only every second. Inasmuch as a long term high or low is often one experienced under capitulation, this difference can be material on the higher time frames.

This is the most likely explanation why the raw index does not match the tracking index ETF. From this I conclude that since we can only trade the tracking ETF, that the raw index clusters are less important and could be removed from the presentation with no impact on performance.

Thanks Bob.

pgd