Pivot points

Amongst the stuff i downloaded, i stumbled upon a short one on Pivot Points. It's not the first time i've 'used' this, but suddenly, i realize it could utilized to point out price targets to place my orders.

The initial simple formula is as such:
R2 = P + (H - L) = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (H - L) = P - (R1 - S1)

There is another version by Tom DeMark, which kind of gives you the middle range of the pivots. From the looks of it, he believes that if the next period (day/week) pivot will be affected by whether or not it was an up/down day before.

I feel that it can be successfully utilized as a powerful indicator when both daily and weekly (and perhaps monthly) figures coincide. Ie; The weekly R1 point is close to the daily R1 point of the previous day.

These points can be used to add confluence to the trade setup.