FAQs Frequently Asked Questions
Q: Does the pocket pivot have to close near the top of its trading range to be a valid pocket pivot?
If all criteria were met but the PP bar closed below the bottom 1/2 or 1/4 of the bar would it still be a valid PP?
A: We ideally prefer the stock to close the day at the top end of its trading range. However, if it closes in the top half of its trading range and is up on the day, it could still be considered valid. Price/volume is contextual so we would want to get a sense of why it closed, say, closer to midbar. Perhaps the general market was weak that day in which case such a close could be more easily forgiven.
|First published:||1 Nov 2010|
|Last updated:||1 Nov 2010|