PivotR2
Filter
Distance From Pivot R2 Filter (PivotR2)
Find stocks trading above, below, or near their second resistance pivot (R2), in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The Distance from Pivot R2 filter measures how far the current price is from the second resistance pivot (R2), 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 R2 filter the moment each alert fires, and Top Lists can sort by it.
How Trade Ideas finds it: to find stocks above their second resistance line, set the min above pivot R2 to 0. See Trade Ideas plans and pricing to run it live.
How the Distance From Pivot R2 filter works
This distance from pivot filter specifically refers to a strategy where traders look at how far a stock's current price is from a pivot point level, particularly the R2 level. R2 represents the second resistance level calculated from the pivot points formula.
Here's how it works:
Calculate Pivot Points: The first step is to calculate pivot points. This involves determining a pivot point (P) as well as support (S1, S2, etc.) and resistance (R1, R2, etc.) levels based on the previous day's price action. Here are the formulas to caculate those specific points:
- Resistance 2 = Pivot + (R1 - S1)
- Resistance 1 = 2 * Pivot - Low
- Pivot Point = (High + Close + Low) / 3
- Support 1 = 2 * Pivot - High
- Support 2 = Pivot - (R1 - S1)
These are all based on the previous day's high, low, and close:
Formula
Identify R2: R2 is the second resistance level calculated in the pivot points formula. It's considered a significant resistance level beyond which the stock may encounter further selling pressure.
Calculate Distance from R2: Once R2 is identified, traders measure how far the current price of the stock is from this level. This distance is calculated in terms of percentage.
Distance From Pivot R2 filter 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 above their second resistance line, set the min above pivot R2 to 0. These are stocks which are doing extremely well compared to yesterday.
Using the Distance from Pivot R2 Filter
Several trading strategies can be employed with the Distance from Pivot R2 filter. Here are a few examples:
- Breakout Trading Strategy: Traders can use the distance from R2 to anticipate potential breakout opportunities. If the stock price is nearing or above R2, it could signal a breakout to higher levels. In this case, traders may initiate long positions with appropriate risk management techniques, aiming to capitalize on the upward momentum.
- Reversal Trading Strategy: Conversely, if the stock price is significantly below R2, it may indicate overbought conditions or strong resistance. Traders could use this as a signal for a potential reversal. They might initiate short positions or wait for confirmation signals such as bearish candlestick patterns or divergence in other indicators.
- Trend Confirmation Strategy: Traders may use the distance from R2 as a confirmation signal for the prevailing trend. If the stock price is consistently staying above R2 during an uptrend or below R2 during a downtrend, it could reinforce the strength of the trend. Traders may enter positions in the direction of the trend, aiming to ride the trend until signs of exhaustion appear.
- Range-Bound Trading Strategy: In sideways or range-bound markets, traders can use the distance from R2 to identify potential reversal points. If the stock price approaches R2 but fails to break above it convincingly, it could signal a reversal back towards lower levels of the range. Traders may initiate short positions with a target towards the lower end of the range and a stop-loss above R2.
Filters to combine with Distance From Pivot R2
Alerts to pair with the Distance From Pivot R2 filter
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FAQ
Which stocks are trading above their second resistance pivot (R2) right now?
Add the Distance From Pivot R2 filter (PivotR2) to a Trade Ideas Streaming Alerts or Top List (Screener) window. To find stocks above their second resistance line, set the min above pivot R2 to 0.
What is the Distance From Pivot R2 filter?
The Distance from Pivot R2 filter measures how far the current price is from the second resistance pivot (R2), 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 R2 filter (PivotR2) in Trade Ideas Streaming Alerts and Top Lists to find stocks trading above, below, or near their second resistance pivot (R2). The Distance from Pivot R2 filter measures how far the current price is from the second resistance pivot (R2), in percent.