DeMark Pivots

DeMark Pivots: Unlock Precision Support and Resistance in Futures Trading

Introduction to DeMark Pivots

DeMark Pivots helps you find potential support and resistance levels, so you can see where prices might change direction. This indicator uses prior price data, which makes it useful for futures traders like you. Whether you are new to trading or have experience, it fits well in your strategy for markets like E-mini S&P 500 futures (ES).

DeMark Pivots is part of the Support & Resistance category, which includes tools that help you manage risk and spot trends. In this group, you can find other indicators that work with DeMark Pivots. Unlike Floor Pivots, which average high, low, and close simply, DeMark changes based on close versus open. This gives you levels with a bullish or bearish lean, so it stands out in futures trading.

You can use it in equity index futures or commodity futures, because it handles gaps and shifts well. For example, pair it with Fair Value Gap (FVG), which shows market imbalances. Wondering how to improve your next trade? DeMark Pivots might help you decide better.

[Chart Placeholder: Simple line chart showing DeMark Pivot levels on a daily ES futures chart, with labels for P, R1, and S1.]

How DeMark Pivots Works

DeMark Pivots calculates levels using the previous period's open, high, low, and close, so it adapts to market close. You can set it for daily, weekly, or monthly periods, which matches your trading style in futures. This works well in high-volume sessions for Nasdaq 100 futures (NQ), or during rollovers in soybean futures (ZS).

To use DeMark Pivots in futures trading, start by learning its formula, because it changes with sentiment. It checks if the close was below, above, or equal to the open, so levels show bias. This creates a central pivot point (P), resistance (R1), and support (S1). Compared to Camarilla Pivots, DeMark has fewer levels but stronger bias.

Before the formulas, note that X is the base value, which weights prices differently. If close is low, it leans bearish, so levels drop. If close is high, it leans bullish, so levels rise. If equal, it balances. Now, here are the calculations:

\text{If } C < O, \quad X = H + 2L + C

\text{If } C > O, \quad X = 2H + L + C

\text{If } C = O, \quad X = H + L + 2C

Then, find the levels like this:

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 P = \frac{X}{4} 

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 R1 = \frac{X}{2} - L 

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*** QuickLaTeX cannot compile formula:
 S1 = \frac{X}{2} - H 

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http://wordpress.org/extend/plugins/core-control/
http://wordpress.org/support/topic/an-unexpected-http-error-occurred-during-the-api-request-on-wordpress-3?replies=37

Where O is open, H is high, L is low, and C is close. In simple terms, these project high, low, and midpoint for the next period. They help spot exhaustion in futures, like NQ rallying to R1 then turning.

For example, in CL futures during volatility, if prior close was above open, R1 might limit upside. In ZB futures, S1 could support during yield changes. Tikitrade adds custom signals, like alerts for pierces, so you save time. For more on futures trading basics, visit CME Group.

[Diagram Placeholder: Step-by-step flowchart of DeMark Pivot calculation, with branches for close conditions and final levels.]

Trading with DeMark Pivots

Risk Disclaimer: These trading setups are for educational purposes only and not investment advice. Past performance doesn't guarantee future results.

DeMark Pivots gives clear levels for your futures trades, but always use risk rules, like limiting position size to 1-2% of your account. Set stops too, so you protect capital. Here are three strategies, each paired with another Tikitrade tool, which helps you see better results. Test them on a demo account first, because practice builds skill.

Breakout Strategy

Setup: Look for price staying near the pivot (P) in quiet markets, like ES futures in slow hours, when Volume Breakout shows rising volume.

Entry: Go long if price closes above R1 with more volume; go short below S1. For instance, in GC futures, a close above R1 after a calm session signals strength.

Stop-Loss: Put it below the pivot for longs, or above for shorts, about 1-2 Average True Range (ATR) away, so it handles small moves.

Take-Profit: Aim for twice your risk, or trail with Supertrend, which lets profits run.

DeMark works well here, because its bias helps in trends when prior close was strong.

Reversal Strategy

Setup: Watch price near R1 or S1 with weak signs, like in CL futures after a fast rise, when Relative Strength Index (RSI) is over 70 or under 30.

Entry: Short if price goes above R1 but closes below; long if below S1 but closes above. Tikitrade's signals highlight these rejections quickly.

Stop-Loss: Set beyond R1 for shorts, limiting risk to 0.5-1%, so you stay safe.

Take-Profit: Target the pivot or other side, like S1 from an R1 short.

This uses DeMark's skill in false breaks, especially in commodities like ZS during reports.

Range-Bound Strategy

Setup: In flat markets, like ZN futures with steady yields, treat levels as edges, when Bollinger Bands tighten.

Entry: Buy near S1 if bands narrow; sell near R1. Wait for candle confirmation, like a hammer at support.

Stop-Loss: Below S1 for buys, tight to fit the range.

Take-Profit: Hit the pivot or opposite, scaling half at middle.

DeMark defines ranges well in low-vol futures, but check volume before assuming no breakout. Use stops always, since futures shift quick, and try tools like Woodie's Pivots too.

[Chart Placeholder: Candlestick chart of CL futures with DeMark levels, arrows for breakout, reversal, and range trades.]

Tikitrade’s DeMark Pivots Indicator

Tikitrade makes DeMark Pivots easy on Tradovate and NinjaTrader Web, with features that help futures traders like you. Our tool has colored lines that change based on price, so green shows above and red below. It also gives signals for crosses and pierces, which alert you to chances without much watching.

We differ from others with support just for Tradovate and NinjaTrader Web, where indicators load fast. We listen to you and add updates, like cloud views for level strength. DeMark Pivots for futures trading on Tikitrade lets you set multi-timeframes, so daily fits your 5-minute ES chart.

Key settings you can change include:

  • Type (default: daily) – Pick weekly or monthly for your needs, like monthly for ZB holds.
  • Show Crossover Signals (default: false) – Turn on for arrows when price crosses, good for CL breaks.
  • Show Pierce Signals (default: true) – Shows rejections, key for reversal setups in GC.
  • Paint Lines (default: false) – Colors lines live, which helps in busy sessions.
  • Confirm Signals (default: true) – Waits for close, so fewer false calls in volume.

Screenshot: Tikitrade’s DeMark Pivots showing customizable pierce signals on Tradovate for crude oil futures.
Alt text: Tikitrade DeMark Pivots indicator applied to crude oil futures (CL) for SEO optimization.

It is in our Support & Resistance group, and works with MTF (Day/Week/Month) OHLC Levels. Give it a try on NinjaTrader Web!

Fun Facts About DeMark Pivots

Did you know DeMark Pivots came from Tom DeMark's work in the 1990s, when he aimed to predict ranges for big traders? He started DeMark Analytics, which advises funds, and made tools like TD Sequential for timing ends.

See his site at DeMark for details. He wrote The New Science of Technical Analysis, full of ideas. For more on his work, read DeMark Indicators by Jason Perl, which shares tips for futures.

Conclusion

DeMark Pivots offers a smart way to see support and resistance, which helps your trades in ES, CL, and more. Its calculations and Tikitrade features cut noise, so you make clear choices. We believe our tools on Tradovate and NinjaTrader Web give you a strong edge, and we keep improving.

Sign up for Tikitrade today and elevate your futures trading with our premium DeMark Pivots indicator! Always consult a financial advisor for personalized advice in futures trading.

Frequently Asked Questions

Can DeMark Pivots be used for day trading futures?
Yes, use daily type on short charts for ES or NQ, because R1 and S1 fit scalps well. Tikitrade signals help spot them fast.

How does Tikitrade's DeMark Pivots differ from free versions?
It adds alerts for pierces and crosses, plus colors, which improve use in real futures trades on Tradovate.

What are the best settings for DeMark Pivots in futures?
Begin with daily and turn on pierce signals, then adjust for markets like weekly in GC, and test on NinjaTrader Web.

Is DeMark Pivots better than Floor Pivots for futures?
It varies, since DeMark's bias helps trends, while Floor Pivots suits flat times. Try both to see.

Can I use DeMark Pivots with other indicators?
Yes, add RSI (Relative Strength Index) for overbought checks in CL trades.

How accurate is DeMark Pivots in volatile futures markets?
It does well in high-vol like ZS, but pair with volume and risk rules for better outcomes.

Related Indicators for Futures Trading

  • Pair DeMark Pivots with Fair Value Gap (FVG) to find imbalances near levels in gold futures (GC).
  • Use it with Supertrend for follows after R1 in E-mini S&P futures (ES).
  • Add Session Volume Profile to check volume at pivots in crude oil futures (CL).
  • Link with ADX for strength on breaks in Treasury bond futures (ZN).

Embed: Tikitrade tutorial video on DeMark Pivots for futures trading. Caption: "Watch how DeMark Pivots enhances your Tradovate setup for precise futures entries."

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.