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JFC Real Time
Pivot
The
JFC Real Time Pivot is the third of the group of four indicators which we will
use to further define the short term trend for day trading purposes.
This
indicator is universal in nature and can be used on any bar chart, any market,
any time frame.
Inputs
There
are two inputs associated with the JFC Real Time Pivot Indicator, SENS1 and PLT.
The
SENS1 input will directly vary the sensitivity of the indicator plots. Lower
values will decrease the sensitivity markedly. From a practical point of view,
it is unlikely that values less than 5 will produce results which will be
useable by the trader. Settings at this level or lower will produce few, if any,
trading signals with the possible exception of a very short time frame on a
volatile issue, as in a 5 tick chart of the S&P 500 futures market.
Greater values will increase the sensitivity of the indicator and result in more plots being placed on the screen, and thus a greater number of trading signals.
Generally, the less volatile
contracts / issues and higher time frames, such as 30 minute charts, will
require higher values to produce an adequate number of viable trading signals.
The PLT input, as is the case with several other indicators, simply sets the plot parameters for the red and blue dots. The value represents the distance from the price bars at which the significant dots will appear. The indicator is defaulted to .2 which is adequate for most stock issues and indices. When using this tool on the Treasury Bond charts, or any other item scaled in 32 nds, you will need to use an input value of .01 to .05 to get a useable plot.
Style
The
JFC Real Time Pivot has two plots, RTP Buy, which is defaulted to Blue and
appears as a blue dot below the price bars, and RTP Sell, which appears as a red
dot above the price bars.
The scaling of this
indicator must be set to Same as price data. Other settings will result in
plots, while accurate, will be difficult to interpret.
Properties
The Properties screen for
the JFC Real Time Pivot Indicator should be set up as shown above.
There
is an alert programmed as a part of this indicator which will notify the user as
both the buy and sell signals appear on the price charts in real time.
While
it may be tempting to enable the Update every tick box in anticipation of
getting a quicker signal from this indicator, this can be a dangerous activity.
The programming for this tool acts in such a manner that the conditions which are required to qualify the price bar in question for a red or blue dot may be satisfied while the bar is forming but not be satisfied when the bar is completed. Since this is the case, a dot could appear above or below a bar while the bar is being formed but not disappear when the bar closes. It is thus possible to get a false signal from this indicator by checking the Update every tick box. It is strongly suggested that you not do so.
Objective
The
JFC Real Time Pivot, as with our two previous programs, is continuously
searching for its own version of exhaustion on your price chart. It does its
work using a totally separate mathematical process than is used in any of the
other three exhaustion indicators.
Although
this tool is one that can be used as a stand alone indicator, we feel it is best
utilized in combination with the other three exhaustion indicators.
If
it is your method to use this indicator by itself, it is strongly recommended
that you use the JFC Entry Point Indicator as your final trading tool.
The
JFC Real Time Pivot will frequently issue multiple sell orders in a rapidly
rising market and buy orders in a rapidly falling market. The use of the JFC
Entry Point indicator will be of great benefit to you for
The
appearance of a blue dot below the price bar is an indication of downside
exhaustion and a confirmation that we are entering a price zone where a buy
order should be considered.
When
a red dot is observed above a price bar the program is identifying upside
exhaustion, confirming that the market in entering a zone in which a sell
situation may arise.
Sequencing
The
JFC Real Time Pivot, in most instances, will not be the first indication of
short term exhaustion on your screen. This will of course vary with the
sensitivity settings of the indicators you have on your chart, but as the
individual indicators are defaulted, the JFC Real Time Pivot will most
frequently appear after we get our heads up warning from the JFC Reversal
Indicator and prior to signals from JFC Exhaustion.
The
normal sequence of indicator appearance is 1st, JFC Reversal, 2nd
JFC Real Time Pivot, 3rd JFC Exhaustion and 4th, JFC
Cluster. With the above in mind, consider the use of the JFC Real Time Pivot as
a confirmatory signal that we are entering
a zone where a trade will be probable pending the activity of the other
tools in your trading library.
