Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2008 by Patrick Mikula All Rights Reserved
I would like to take a moment and discuss the MarketWarrior indicator Million Dollar Pivot Finder. This indicator will draw an upward arrow below the prices where it finds a potential bottom pivot, and it will draw a downward pointing arrow above the prices where it finds a potential top. This indicator is analyzing the markets for cycle points where the market appears to be over extended. When the market cycles over extend downward, the MDPF will pick a bottom. When the market cycles over extend upward, the MDPF will pick a top. The chart below shows the most actively trading interest rate futures contract which is the Eurodollar – symbol ED or the Globex symbol GE. On this chart the MDPF has identified two bottoms and three tops. Notice the MDPF identified the tops and bottoms with in a few bars of the actual top or bottom bar. The one limitation to this indicator is that it can sometimes go for an extended number of bars without finding a pivot point. For this reason the MDPF can not be used as the main indicator in a trading plan but makes a very good addition to another trading plan.
