PivotS2
Filter
Distance From Pivot S2 Filter (PivotS2)
Find stocks trading above, below, or near their second support pivot (S2), in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The Distance from Pivot S2 filter measures how far the current price is from the second support pivot (S2), in percent. Pivot levels are calculated from the previous day's high, low and close.
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Streaming Alerts check the Distance From Pivot S2 filter the moment each alert fires, and Top Lists can sort by it.
How Trade Ideas finds it: to find stocks between their first and second support lines, set the max above pivot S1 to 0 and the min above pivot S2 to 0. See Trade Ideas plans and pricing to run it live.
How the Distance From Pivot S2 filter works
The Distance from Pivot S2 filter in stock trading is a technical analysis tool used by traders to gauge how far a stock's current price is from the second support level (S2) calculated from pivot points. Pivot points are significant price levels derived from the previous day's high, low, and close prices, and they help traders identify potential areas of support and resistance.
Here's how the distance from pivot S2 filter works:
Calculation of Pivot Points: Pivot points are calculated based on the previous day's high, low, and close prices. The pivot point itself is the average of these three prices. Support and resistance levels are then calculated around the pivot point. Here are the formulas to caculate those specific points:
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Resistance 2 = Pivot + (R1 - S1)
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Resistance 1 = 2 * Pivot - Low
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Pivot Point = (High + Close + Low) / 3
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Support 1 = 2 * Pivot - High
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Support 2 = Pivot - (R1 - S1)
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Identification of Support Level S2: S2 (the second support level) is one of the support levels calculated from pivot points. It is derived using the following formula: Pivot - (R1 - S1)
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Measurement of Distance: Once S2 is calculated, traders measure how far the current price of the stock is from this level. The distance can be calculated as the absolute difference between the current price and S2 or as a percentage of the range between the pivot point and S2.
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Application in Trading Strategies: Traders use the distance from pivot S2 filter to make trading decisions. For example:
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If the price is significantly above S2, it may indicate bullish sentiment, and traders may look for buying opportunities or expect a potential bounce in price.
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Conversely, if the price is below S2, it may suggest bearish sentiment, and traders may consider short-selling or exiting long positions.
Distance From Pivot S2 filter settings
Settings
The settings of each Trade Ideas filter are defined in the Window Specific Filters Tab located in the Configuration Window of your Alert or Top List (Screener) window.
Here is how to setup the filter in your configuration window:
To find stocks between their first and second support lines, set the max above pivot S1 to 0 and the min above pivot S2 to 0. This will show stocks which have dropped some since yesterday, but not too much.
Using the Distance from Pivot S2 Filter
Several trading strategies can be employed with the Distance from Pivot S2 filter. Here are a few examples:
- Bounce Trading Strategy: Traders look for price bounces near the S2 support level combined with confirmation from the distance from pivot S2 filter. When the price approaches the S2 support level and the distance from pivot S2 indicates oversold conditions, traders may anticipate a potential bounce. They may wait for bullish reversal patterns or oversold signals from other indicators to confirm the bounce before entering long positions.
- Range-bound Trading Strategy: Traders look for trading opportunities within a range established by the pivot points, including S2. When the price bounces between the pivot point (P) and the S2 support level, traders may use the distance from pivot S2 filter to identify potential entry and exit points. They may buy near the S2 support level when the distance from pivot S2 suggests bullish sentiment and sell near the pivot point (P) when the distance from pivot S2 indicates potential resistance.
- Reversal Trading Strategy: Traders look for reversal signals near the S2 support level combined with confirmation from the distance from pivot S2 filter. When the price approaches the S2 support level and the distance from pivot S2 indicates oversold conditions, traders may anticipate a potential reversal. They may wait for additional confirmation, such as bullish reversal patterns or divergence in other indicators, before entering counter-trend positions.
Filters to combine with Distance From Pivot S2
Alerts to pair with the Distance From Pivot S2 filter
Categories
FAQ
Which stocks are trading above their second support pivot (S2) right now?
Add the Distance From Pivot S2 filter (PivotS2) to a Trade Ideas Streaming Alerts or Top List (Screener) window. To find stocks between their first and second support lines, set the max above pivot S1 to 0 and the min above pivot S2 to 0.
What is the Distance From Pivot S2 filter?
The Distance from Pivot S2 filter measures how far the current price is from the second support pivot (S2), in percent. Pivot levels are calculated from the previous day's high, low and close.
How do I scan for stocks near pivot points?
Use the Distance From Pivot S2 filter (PivotS2) in Trade Ideas Streaming Alerts and Top Lists to find stocks trading above, below, or near their second support pivot (S2). The Distance from Pivot S2 filter measures how far the current price is from the second support pivot (S2), in percent.