hi experts
what is power zones?
read it here
http://pivotfarm.com/
can some expert code the formula for amibroker?please
power zone is a support or resistance that is empowered by many other criteria like swing low,fibo retracement etc
Support and Resistance 101
What are support and resistance levels?
They represent a price point where selling and buying are at equilibrium. In the markets, which are just very large auctions, sometimes there is more supply (sellers) than demand (buyers), and the price goes down. And when the opposite occurs the price goes up. There are times when the price remains somewhat static or it's referred as a price consolidation. This is a 'pause' in the price action and happens as we said when buyers and sellers are in 'check'. There are many possible reasons why the price would pause, but the next move is our opportunity to make money!
Role Reversal
From these areas where the price pauses, there are only two possible scenarios; either a continuation of the current trend or a reversal of the trend. The areas of pause are ' Support and Resistance levels'. Support and Resistance levels are often quoted by commentators as either being Support (a level below the current trading) or Resistance (a level above the current trading). Although this distinction is completely correct, we like to refer to our levels simply as PowerZones because of a key trait of Support and Resistance levelsRole Reversal. The old adage goes Support becomes Resistance and Resistance becomes Support. Support and Resistance levels will often interchange between the two roles and it is key for trading success to be open to this phenomenon.
Proactive/Reactive Support and Resistance
Most Traders will be aware of the many different types of Support and Resistance methods used by traders we have highlighted over 10 that we use as part of our analysis! At Pivotfarm we try to view Support and Resistance in 2 classes, they are either Proactive or Reactive Support and Resistance levels.
Proactive Support and Resistance methods are predictive they often outline areas where price has not actually been, they are formed based upon current price action that through analysis has been shown to be predictive of future price action. Proactive Support and Resistance methods include Elliot Wave, Fibonacci, Calculated Pivots, Trendlines and Moving averages. VWAP, Market Profile (VAH, VAL and POC)
Reactive Support and Resistance are the opposite they are formed directly as a result of price action or volume behaviour. They include Volume Profile, Price Swing lows/highs, Initial Balance, Open Gaps and OHLC.
Both Proactive and Reactive Support and Resistance methods have merit and form a staple part of the Pivotfarm method.
Thoughts for using the PowerZones
The Support and Resistance PowerZones can be used in a number of ways to aid your present trading strategy. They can be used to tell you when to exit or partially exit a current position. A breakout from a PowerZone may be used to enter a new position or add-on to and existing position. Watching what happens when price enters a PowerZone may be indicative of taking a position or deciding to remain 'flat'. If your strategy gives a buy signal, and the price is just below a zone, you may wait to see how the price reacts to the resistance zone. There are many ways to augment your trade setups using the PowerZones.
Some form of Support and Resistance is a core foundation of most profitable technical analysis based trading strategies. It is a major pillar of Technical Analysis and a must have in the tool box of every successful trader. As simple as the concept behind support and resistance may be, the practice can be difficult due to the wide range of information and techniques available. Our mission at Pivotfarm is to combine and condense this information for traders in a format that is easy for them to use.
Professional traders have teams of analysts working for them to do their 'homework' every day. Now you can too. We are committed to providing quality Support and Resistance Powerzones to you every trading day, before the open, so you don't have to spend the time even if you know how to do it.
The Confluence PowerZones
Most traders whether they are newbies or seasoned veterans with 20+ years of experience have come across Support and Resistance in some way. The methodologies available to calculate Support & Resistance levels are as varied as there are markets to trade. Youll often hear gurus on Bloomberg TV saying the market is currently hitting resistance at a 50% Fibonacci Retracement, shortly followed by someone else saying that the same area is resistance because it is a Double Top. If you watch for long enough you will hear people talking about Moving averages, Volume Profiles, Floor Pivots, Elliott Waves and an endless list of methods for identifying Support and Resistance. The question facing most traders is which of them, if any work? Well the easy answer is that they all do! (To an extent)
Market Personality
Most traders recognise that the market goes through various phases. These include accumulation, distribution, bullish, bearish, trending, range bound, high volatility, low volatility and various combinations of these. These personality shifts lead to one of the most common issues for traders, the OMG! My strategy worked so well last month, but this month its getting killed! syndrome. Most trading strategies are built for certain market phases, and when the markets personality shifts they struggle. This is an experience we are sure that many traders have experienced. Where does this tie in with our PowerZones? Well at any given point in time, based upon the markets phase or personality certain methods of Support and Resistance will do very well and others may lag.
PowerZone Core Concept: Confluence
The answer lies in one word. Confluence. In the same way that a rope is made up of multiple strands for strength;
the Pivotfarm Confluence PowerZones are made up of the confluence of multiple Support and Resistance methodologies including:
Market Profile (TPO)
Volume Profile
Elliot Wave
Calculated Pivots
Open Gaps
Naked VPOCs
VWAP
OHLC
Trendlines
Initial Balance
Fibonacci Retracements/Extensions & Clusters
Intraday/Prior day/week/month swing highs and lows
Moving Averages
The depth of analysis and confluence required to form our PowerZones puts the probability of price stopping and reversing heavily on our side. For example
if there was a PowerZone with a Volume Profile peak at 1121.00, an Elliot Wave ending at 1121.25, a Fibonacci cluster from 1121.00-1122.00 and also a prior day high at 1121.50. What do you think are the chances of price stopping and reversing here? The answer is very high! One of the main reasons is visibility; this PowerZone is combining methods used by at least 4 different groups of traders. There are more eyes on this area and thus it is likely to be a significantly liquid and highly probable area for price reversal.
regards
ford
what is power zones?
read it here
http://pivotfarm.com/
can some expert code the formula for amibroker?please
power zone is a support or resistance that is empowered by many other criteria like swing low,fibo retracement etc
Support and Resistance 101
What are support and resistance levels?
They represent a price point where selling and buying are at equilibrium. In the markets, which are just very large auctions, sometimes there is more supply (sellers) than demand (buyers), and the price goes down. And when the opposite occurs the price goes up. There are times when the price remains somewhat static or it's referred as a price consolidation. This is a 'pause' in the price action and happens as we said when buyers and sellers are in 'check'. There are many possible reasons why the price would pause, but the next move is our opportunity to make money!
Role Reversal
From these areas where the price pauses, there are only two possible scenarios; either a continuation of the current trend or a reversal of the trend. The areas of pause are ' Support and Resistance levels'. Support and Resistance levels are often quoted by commentators as either being Support (a level below the current trading) or Resistance (a level above the current trading). Although this distinction is completely correct, we like to refer to our levels simply as PowerZones because of a key trait of Support and Resistance levelsRole Reversal. The old adage goes Support becomes Resistance and Resistance becomes Support. Support and Resistance levels will often interchange between the two roles and it is key for trading success to be open to this phenomenon.
Proactive/Reactive Support and Resistance
Most Traders will be aware of the many different types of Support and Resistance methods used by traders we have highlighted over 10 that we use as part of our analysis! At Pivotfarm we try to view Support and Resistance in 2 classes, they are either Proactive or Reactive Support and Resistance levels.
Proactive Support and Resistance methods are predictive they often outline areas where price has not actually been, they are formed based upon current price action that through analysis has been shown to be predictive of future price action. Proactive Support and Resistance methods include Elliot Wave, Fibonacci, Calculated Pivots, Trendlines and Moving averages. VWAP, Market Profile (VAH, VAL and POC)
Reactive Support and Resistance are the opposite they are formed directly as a result of price action or volume behaviour. They include Volume Profile, Price Swing lows/highs, Initial Balance, Open Gaps and OHLC.
Both Proactive and Reactive Support and Resistance methods have merit and form a staple part of the Pivotfarm method.
Thoughts for using the PowerZones
The Support and Resistance PowerZones can be used in a number of ways to aid your present trading strategy. They can be used to tell you when to exit or partially exit a current position. A breakout from a PowerZone may be used to enter a new position or add-on to and existing position. Watching what happens when price enters a PowerZone may be indicative of taking a position or deciding to remain 'flat'. If your strategy gives a buy signal, and the price is just below a zone, you may wait to see how the price reacts to the resistance zone. There are many ways to augment your trade setups using the PowerZones.
Some form of Support and Resistance is a core foundation of most profitable technical analysis based trading strategies. It is a major pillar of Technical Analysis and a must have in the tool box of every successful trader. As simple as the concept behind support and resistance may be, the practice can be difficult due to the wide range of information and techniques available. Our mission at Pivotfarm is to combine and condense this information for traders in a format that is easy for them to use.
Professional traders have teams of analysts working for them to do their 'homework' every day. Now you can too. We are committed to providing quality Support and Resistance Powerzones to you every trading day, before the open, so you don't have to spend the time even if you know how to do it.
The Confluence PowerZones
Most traders whether they are newbies or seasoned veterans with 20+ years of experience have come across Support and Resistance in some way. The methodologies available to calculate Support & Resistance levels are as varied as there are markets to trade. Youll often hear gurus on Bloomberg TV saying the market is currently hitting resistance at a 50% Fibonacci Retracement, shortly followed by someone else saying that the same area is resistance because it is a Double Top. If you watch for long enough you will hear people talking about Moving averages, Volume Profiles, Floor Pivots, Elliott Waves and an endless list of methods for identifying Support and Resistance. The question facing most traders is which of them, if any work? Well the easy answer is that they all do! (To an extent)
Market Personality
Most traders recognise that the market goes through various phases. These include accumulation, distribution, bullish, bearish, trending, range bound, high volatility, low volatility and various combinations of these. These personality shifts lead to one of the most common issues for traders, the OMG! My strategy worked so well last month, but this month its getting killed! syndrome. Most trading strategies are built for certain market phases, and when the markets personality shifts they struggle. This is an experience we are sure that many traders have experienced. Where does this tie in with our PowerZones? Well at any given point in time, based upon the markets phase or personality certain methods of Support and Resistance will do very well and others may lag.
PowerZone Core Concept: Confluence
The answer lies in one word. Confluence. In the same way that a rope is made up of multiple strands for strength;
the Pivotfarm Confluence PowerZones are made up of the confluence of multiple Support and Resistance methodologies including:
Market Profile (TPO)
Volume Profile
Elliot Wave
Calculated Pivots
Open Gaps
Naked VPOCs
VWAP
OHLC
Trendlines
Initial Balance
Fibonacci Retracements/Extensions & Clusters
Intraday/Prior day/week/month swing highs and lows
Moving Averages
The depth of analysis and confluence required to form our PowerZones puts the probability of price stopping and reversing heavily on our side. For example
if there was a PowerZone with a Volume Profile peak at 1121.00, an Elliot Wave ending at 1121.25, a Fibonacci cluster from 1121.00-1122.00 and also a prior day high at 1121.50. What do you think are the chances of price stopping and reversing here? The answer is very high! One of the main reasons is visibility; this PowerZone is combining methods used by at least 4 different groups of traders. There are more eyes on this area and thus it is likely to be a significantly liquid and highly probable area for price reversal.
regards
ford
