#twitter-follow { border: 0;position: fixed; top: 240px; left:0;} #live-support { border: 0;position: fixed; top: 370px; left:0;} #knowledge-base { border: 0;position: fixed; top: 170px; left:0;}

## Percentage of Stocks Trading Above their Pivot Point

by The trader, 2690 days ago

The percentage of stocks trading above their pivot point is a breadth indicator that measures the overall market sentiment.

It calculates the total number of stocks trading above their tomorrow's pivot point level and divides that value by the number of stocks trading below their tomorrow's pivot point level.

The formula of the floor pivot point is:
PP = (high + low + close) / 3;

This market breadth indicator should be used mainly for very short-term predictions (one or two days). It creates the following ticker symbol: "_Stocks_Above_PP"

When applied to S&P 500 index (^GSPC), for example, I found the following trading rule to be quite profitable:

buy = perf(GetSeries('_Stocks_Above_PP', Close), 1) < 0 and perf(close, 1) < 0;

The above rule translates into:

- Buy the S&P 500 when the "percentage of stocks trading above their pivot point" decreases (one-bar return)
- And when the S&P 500 index decreases too

You can of course add additional rules to make the trading system even better, but I won't tell you which indicators or time-series to use.

To draw pivot points on a chart, use the following item:

How to predict and trade the stock market using pivot points

A screen I have shared yesterday:
Pivot Point Breakout Scanner

What is this?

 Type: Composite Index Object ID: 1133 Country: All Market: Stock Market Style: Technical Analysis

Related objects
Show All
Number of Stocks Above Upper Bollinger Bands (by The trader, uploaded several months ago)
No notes
 31
Number of Stocks Making a new 52-Week Low - Market Indicator (by QuantShare, uploaded several months ago)
No notes
 47
Estimation of the Hurst Exponent - Trading Indicator (by Brian Brown, uploaded several months ago)
No notes
 161
No notes
 252
Large price and volume gain after consolidation (by QuantShare, uploaded several months ago)
No notes
 123
Highlight Area on Chart (by Patrick Fonce, uploaded several months ago)
No notes
 35
No notes
 130
Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object