What pivot calculation?

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Pivot Points - Below are the calculations for the floor trader pivots that are sometimes used in the broadcast and are listed daily in the ShadowTrader Pro Focus Report. The high, low and close used in the calculation is from the prior day's values. Generally these values are derived from the E-mini S&P futures, also known as "ES". The pivots can be calculated using 24hour data or only trading hours only data. Although experimentation has proven both to be valid, we have found using trading hours only data to be more relevant as large gaps often put the pivot points too far outside of the market to be of any use. Although the high and low can be taken from any intra day futures chart, its important to get the proper closing value which is the settlement value. Your best bet is to use the CME Settlement Prices to get your CLOSE number. Refresh the page if necessary to make sure you have the prior day's data on the screen. Write down the figure from that site and plug it and your high and low (from your intra day ES chart) into a simple Xcel with the formulas below. Use the settlement price (SETT) as your closing price, rather than the "LAST". "R" means Resistance and "S" means Support.
PIVOT = (High + Close + Low)/3
R3 = High + 2(Pivot - Low)
R2 = Pivot + (R1 - S1)
R1 = (2*Pivot) - Low
S1 = (2*Pivot) - High
S2 = Pivot - (R1 - S1)
S3 = Low - 2(Hi - Pivot)

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