Pivot point (stock market) and Uroplatus sikorae

Monthly pivot point chart of the Dow Jones Industrial Average for the first 8 months of 2009, showing sets of first and second levels of resistance (green) and support (red). The pivot point levels are highlighted in yellow. Trading below the pivot point, particularly at the beginning of a trading period sets a bearish market sentiment and often results in further price decline, while trading above it, bullish price action may continue for some time.

In financial markets, a pivot point is a price level that is used by traders as a predictive indicator of market movement. A pivot point is calculated as an average of significant prices (high, low, close) from the performance of a market in the prior trading period. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish.

It is customary to calculate additional levels of support and resistance, below and above the pivot point, respectively, by subtracting or adding price differentials calculated from previous trading ranges of the market.

A pivot point and the associated support and resistance levels are often turning points for the direction of price movement in a market. In an up-trending market, the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no longer sustainable and a reversal may occur. In a declining market, a pivot point and the support levels may represent a low price level of stability or a resistance to further decline.

Contents 1 Calculation 2 Support and resistance levels 3 Trading tool 4 See also 5 References


Several methods exist for calculating the pivot point (P) of a market. Most commonly, it is the arithmetic average of the high (H), low (L), and closing (C) prices of the market in the prior trading period: P = (H + L + C) / 3.

Sometimes, the average also includes the previous period's or the current period's opening price (O): P = (O + H + L + C) / 4.

In other cases, traders like to emphasize the closing price, P = (H + L + C + C) / 4, or the current periods opening price, P = (H + L + O + O) / 4. Support and resistance levels

Price support and resistance levels are key trading tools in any market. Their roles may be interchangeable, depending on whether the price level is approached in an up-trending or a down-trending market. These price levels may be derived from many market assumptions and conventions. In pivot point analysis, several levels, usually three, are commonly recognized below and above the pivot point. These are calculated from the range of price movement in the previous trading period, added to the pivot point for resistances and subtracted from it for support levels.

The first and most significant level of support (S1) and resistance (R1) is obtained by recognition of the upper and the lower halves of the prior trading range, defined by the trading above the pivot point (H − P), and below it (P − L). The first resistance on the up-side of the market is given by the lower width of prior trading added to the pivot point price and the first support on the down-side is the width of the upper part of the prior trading range below the pivot point. R1 = P + (P − L) = 2×P − L S1 = P − (H − P) = 2×P − H

Thus, these levels may simply be calculated by subtracting the previous low (L) and high (H) price, respectively, from twice the pivot point value:

The second set of resistance (R2) and support (S2) levels are above and below, respectively, the first set. They are simply determined from the full width of the prior trading range (H − L), added to and subtracted from the pivot point, respectively: R2 = P + (H − L) S2 = P − (H − L)

Commonly a third set is also calculated, again representing another higher resistance level (R3) and a yet lower support level (S3). The method of the second set is continued by doubling the range added and subtracted from the pivot point: R3 = H + 2×(P − L) = R1 + (H − L) S3 = L − 2×(H − P) = S1 − (H − L)

This concept is sometimes, albeit rarely, extended to a fourth set in which the tripled value of the trading range is used in the calculation.

Qualitatively, the second and higher support and resistance levels are always located symmetrically around the pivot point, whereas this is not the case for the first levels, unless the pivot point happens to divide the prior trading range exactly in half. Trading tool

The pivot point itself represents a level of highest resistance or support, depending on the overall market condition. If the market is directionless (undecided), prices may fluctuate greatly around this level until a price breakout develops. Trading above or below the pivot point indicates the overall market sentiment. It is a leading indicator providing advanced signaling of potentially new market highs or lows within a given time frame.

The support and resistance levels calculated from the pivot point and the previous market width may be used as exit points of trades, but are rarely used as entry signals. For example, if the market is up-trending and breaks through the pivot point, the first resistance level is often a good target to close a position, as the probability of resistance and reversal increases greatly. 5-day pivot point chart of the SPDR Gold Trust (GLD) for intra-day trading in October 2009

Many traders recognize the half-way levels between any of these levels as additional, but weaker resistance or support areas. The half-way (middle) point between the pivot point and R1 is designated M+, between R1 and R2 is M++, and below the pivot point the middle points are labeled as M− and M−−. In the 5-day intra-day chart of the SPDR Gold Trust (above) the middle points can clearly be identified as support in days 1, 3, and 4, and as resistance in days 2 and 3. See also Fundamental analysis Market analysis Market timing Technical indicator Technical analysis software

Uroplatus sikorae and Pivot point (stock market)

Camouflaged on a branch hiding on a log

Uroplatus sikorae is a species of gecko commonly referred to as the Mossy leaf-tailed gecko. This species, endemic to Madagascar, is found in primary and secondary forests on the island. It has the ability to change its skin color to match its surroundings and possesses dermal flaps which break up its outline when at rest.

It is a CITES II protected animal due to habitat loss and overcollection for the pet trade.

Contents 1 Taxonomy and etymology 2 Description 3 Diet 4 Distribution and habitat 5 Captivity 6 Threats 7 References

Taxonomy and etymology

The generic name, Uroplatus, is a Latinization of two Greek words: "ourá" (οὐρά) meaning "tail" and "platys" (πλατύς) meaning "flat". Its specific name is a Latinization of the name Franz Sikora, a German fossil-hunter and explorer of Madagascar. The species was first described by German zoologist Oskar Boettger but not published until three years after his death. Its common name refers to the mossy-like camouflage patterns and colors of the lizard's skin.

The genus Uroplatus contains 14 species endemic to Madagascar. The species Uroplatus sameiti was considered to be a subspecies of U. sikorae until 2007, when it was proposed to be elevated to species level on the basis of its pale oral mucosa, in contrast to the dark oral mucosa of U. sikorae. Subsequent publications have maintained this separate status, which has now also been verified molecularly. However, in the most recent review of the taxonomy of the Uroplatus genus, it was revealed that the different colour of the mouth is not diagnostic of these two species, as some U. sikorae species were found to share the light oral pigmentation. The diagnosis of these species based on morphology remains difficult.

Phylogenically, U. sikorae has been placed within a monophyletic complex consisting of three other species of Uroplatus: U. fimbriatus, U. giganteus, U. henkeli, and U. sameiti. This complex represents the larger species of the genus. Description

Mossy leaf-tailed geckos are nocturnal and arboreal. Their eyes are large and lidless, and have yellow sclera with elliptical pupils, suited for the gecko's nocturnal habits. The mossy leaf-tailed gecko ranges in size from 6 to 8 inches (15 to 20 cm) when measured from nose to base of the tail. They spend most of the daylight hours hanging vertically on tree trunks, head down, resting. During the night, they will venture from their daylight resting spots, and go off in search of prey.

As with all Uroplatus geckos, the tail is dorso-ventrally flattened. U. sikorae has coloration developed as camouflage, most being grayish brown to black or greenish brown with various markings meant to resemble tree bark; down to the lichens and moss found on the bark. U. sikorae has flaps of skin, running the length of its body, head and limbs, known as the dermal flap, which it can lay against the tree during the day, scattering shadows, and making its outline practically invisible. Additionally, the gecko has a limited ability to alter its skin colour to match its surroundings. Diet

Mossy leaf-tailed geckos are insectivores eating insects, arthropods, and gastropods. Distribution and habitat

Uroplatus sikorae are endemic to Madagascar and are found nowhere else. These geckos are an arboreal species relying on their natural camouflage as they dwell among the trees of the Eastern and central tropical forests of Madagascar. Captivity

The mossy leaf-tailed gecko is uncommon in captivity and often kept in breeding pairs or trios. They eat a variety of appropriately sized insects including crickets and moths. If breeding is successful in captivity, eggs will be laid every 30 days and take 90 days to hatch. Threats

Habitat destruction and deforestation in Madagascar is the primary threat to this animal's future as well as collection for the pet trade. The World Wide Fund for Nature (WWF) lists all of the Uroplatus species on their "Top ten most wanted species list" of animals threatened by illegal wildlife trade, because of it "being captured and sold at alarming rates for the international pet trade". It is a CITES Appendix 2 protected animal.
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