CIT Pivots and Pivot Lines

CIT Pivots (short horizontal lines) are designed to appear only at price levels that mark swing turning points (as detected by the indicator's algorithm).

What sets them apart from other swing indicators is their ability to signal CITs with little or no lag.

CIT Pivots are best used as long/short, support/resistance levels, and as price targets above/below which to place stop/loss orders.

For option traders, they provide a convenient tool for choosing strike prices for executing their favorite option strategies.

CIT Pivots offer an easy way to keep track of higher highs and higher lows or lower highs and lower lows, which are the key tools for identifying up/down trends. As W.D. Gann said: "The great fundamental rule that you must learn in order to be a success is to follow the trend of the market. If you can not determine a definite trend, get out and wait until you can. You can always make plenty of money after the trend is well defined."

W.D. Gann advised also to pay close attention to what he called "The Center of Gravity" or the 50% range retracement of swing highs and lows. According to his theory, when price is above this level, it is in a strong position, and vice versa. CIT Pivots displays the 50% retracement level between the most recent pivots automatically. Users can use this tool to set stop/loss levels as well, and have the ability to adjust the retracement percentage, according to their preferences, from the Format box (coming soon). Another powerful practical idea is to draw a horizontal line at the 50% retracement level and set-up an alert.

The appearance of a CIT Pivot line along with a CIT Angle and/or a CIT Signal is a strong confirmation that a CIT has taken place.

Users can change the default settings and the appearance (Style) of the Pivots from the Format box:

To demonstrate the power of CIT Pivots, and for ease of use, we've added background color functionality i.e. the chart background will change from green to red depending on whether price is above or below the 50% retracement level.

The chart below shows the new template:

CIT Pivot Lines have one major difference from traditional floor pivots, because they use the Open for calculating the different support/resistance levels for the next day/week/month. This gives users a distinct advantage over other market practitioners.

The chart below shows NQ1 with CIT Pivot Lines, CIT Cloud, CIT Signals and CIT SwingT:

SPX500 with CIT Pivot Lines, CIT Cloud, CIT Signals and CIT SwingT: