QuanTAlib/lib/reversals/pivotwood/Pivotwood.md

PIVOTWOOD: Woodie's Pivot Points

Overview

Woodie's Pivot Points weight the closing price twice in the pivot calculation, biasing the central pivot toward where the market actually settled rather than treating high, low, and close equally. This close-weighted approach gives more emphasis to recent price action, making the pivot levels more responsive to the prior bar's close.

Origin and Sources

• Creator: Ken Wood (Woodie), active trader and educator
• Foundation: Modification of classic floor-trader pivot points with double-weighted close
• Philosophy: The close is the most important price of the bar because it represents consensus; weighting it twice reflects this belief

Formula

Using previous bar's High (H), Low (L), Close (C):

PP    = (H + L + 2×C) / 4
range = H - L

R1 = 2×PP - L                    S1 = 2×PP - H
R2 = PP + range                   S2 = PP - range
R3 = H + 2×(PP - L)              S3 = L - 2×(H - PP)

Known Values Example

For H = 110, L = 90, C = 100:

• PP = (110 + 90 + 200) / 4 = 100.0, range = 20
• R1 = 200 - 90 = 110.0, S1 = 200 - 110 = 90.0
• R2 = 100 + 20 = 120.0, S2 = 100 - 20 = 80.0
• R3 = 110 + 2×10 = 130.0, S3 = 90 - 2×10 = 70.0

Close-Weight Effect

When close differs from the midpoint of the range, Woodie's PP shifts toward the close:

• Classic PP (H=120, L=80, C=110): (120+80+110)/3 = 103.33
• Woodie PP (H=120, L=80, C=110): (120+80+220)/4 = 105.00

The 1.67-point difference biases all derived levels toward the close.

Key Properties

• Close bias: PP shifts toward close when close != (H+L)/2
• Level ordering: S3 < S2 < S1 < PP < R1 < R2 < R3 (when range > 0)
• R2/S2 symmetry: R2 - PP = PP - S2 = range (always symmetric)
• R1/S1 asymmetry: R1 - PP = PP - L, PP - S1 = H - PP (asymmetric unless close = midpoint)
• R3/S3: Widest levels, incorporating both the previous high/low and the pivot distance

Usage

// Streaming
var wood = new Pivotwood();
var result = wood.Update(bar);
double pp = wood.PP;
double r1 = wood.R1;  // First resistance
double r2 = wood.R2;  // Second resistance
double r3 = wood.R3;  // Third resistance
double s1 = wood.S1;  // First support
double s2 = wood.S2;  // Second support
double s3 = wood.S3;  // Third support

// Batch
var results = Pivotwood.Batch(bars);

// All 7 levels at once
Pivotwood.BatchAll(high, low, close, ppOut, r1Out, s1Out, r2Out, s2Out, r3Out, s3Out);

Comparison with Other Pivot Variants

Variant	PP Formula	R/S Formula	Levels	Key Difference
PIVOT (Classic)	(H+L+C)/3	Arithmetic from PP	7	Equal HLC weight
PIVOTWOOD	(H+L+2C)/4	Mixed arithmetic	7	Close weighted 2x
PIVOTFIB	(H+L+C)/3	Fibonacci x range	7	0.382, 0.618, 1.000 ratios
PIVOTCAM (Camarilla)	(H+L+C)/3	Close +/- ratio x range	9	1.1/12 series
PIVOTEXT (Extended)	(H+L+C)/3	Arithmetic extended	11	1x-4x range
PIVOTDEM (DeMark)	Conditional X/4	X/2 based	3	Direction-based

Implementation Details

• WarmupPeriod: 2 bars (need previous bar's HLC)
• Parameters: None
• Outputs: 7 (PP, R1, R2, R3, S1, S2, S3)
• Input: TBar (OHLCV)
• Complexity: O(1) per bar
• Uses FMA: Math.FusedMultiplyAdd for R1, S1, R3, S3 computations