About – Quant Pivots


Simpler Trading Team

Nov 21st 2022  .  2 min read

Asymmetrical support and resistance based on statistical analysis of historical data.

Quant Pivots

This study creates asymmetrical support and resistance biased to the up or downside using historical data and statistical analysis.

This study recognizes the problem with an expected move is that it is a moving target based on instantaneous calculations on current data. Quant Pivots adjusts for that problem with past data over a given period, and statistically calculates future targets. This indicator combines elements from studies previously known as the 1 week and 2 week statistics.

Quant Pivots produces various support and resistance levels based on user defined averaging periods (30 period default). Labels provide statistical averages for the price interaction with those support and resistance levels over the time period defined by the user (historical data loaded on the chart).

For example, a 3 year daily chart will have the effect of being ‘weighted’ to more recent data than a 10 year daily chart.

In this example, the 3 year chart analyzed 166 weekly periods. The 10 year chart analyzed 532 weekly periods.

Labels include total number / percent closes inside inner and outer bands. Shorter averaging periods will make the study more ‘responsive’.

Statistics labels give the numeric probability of reaching or closing, above or below each pivot. Pivot levels are not symmetrical, so if stocks are falling quicker than they’re rising, the downtrend is accounted for.

Analysis period and averages may be adjusted to any standard time frame or user define period.

  • Periods Analyzed = Number of time periods considered.
  • H1 / L1= The average high or low (print) that will be reached on a weekly (or user defined) closing basis forward.
  • H2/L2 = One standard deviation away from the inner high H1 or low L1 bands.
  • Touch = How many times a level was reached.
  • Close = How often the close reached that level.