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Thread: Pivot Points

  1. #1
    Specialist Member marc's Avatar

    Pivot Points !!!

    Anyone of you use pivot points for trading?

    I was observing and digging deeper into that topic over the last weeks and I really would like to combine that with my strategy ... however, there seem to be a lot of different calcualtion methods around (Standard, Fibonacci, Camarilla ...) and on top different concepts from which point the calculation starts (GMT start of the day, start of sessions etc.)

    So, I would love to hear about everybodys working settings and theories about PP

  2. #2
    Legendry Member Michael Hodges's Avatar
    it depends on what you mean, a support/resistance or trend line, or Fib retracement can be used as a pivot point, or you can use a tool called the "pivot point indicator" which derives pivots based on prices... the indicator I think if for day traders, or it works off of the current candle, its' really short term ... otherwise use whatever tools you use to find your support/resistance and then trade those like pivots...

    In essence the pivot point is a target where a signal may occur. it may be a break out, break through, reversal, failure etc...the pivot is a target for a signal, the signal is the signal...

  3. #3
    Specialist Member marc's Avatar
    Actually I meant a pivot point indicator which draws SR lines derived from previous day prices ... to my knowledge there are many ways to calculate those lines ... and which hour is considered to be the best starting point, like end-to-end GMT or NYC session or whatever ...
    Just wanted to hear, if someone is using that kind of indicators and which setting you use ..

  4. #4
    Legendry Member Michael Hodges's Avatar
    yeah, that tool is meant for day trading only, you'd use it to mark the target levels for signals based on the previous days open/close... their use is like I said, they aren't signals in and of themselves, just places to look for signals. Say if prices are ranging in no-mans land there are only weak signals.. but when they trend to one of the pivot lines you can start looking for a stronger signals. I would say that using candles only during active, open market times are good. Daily candles of major pairs or indices should be good for day or day to day trading, or hourly/half hourly candles for shorter term trading

  5. #5
    Moderator Kolyo's Avatar
    You can start learning by reading this article http://www.investopedia.com/ask/answ...vot-points.asp and also this article in our Trading School http://www.binaryoptionsthatsuck.com...ot-calculator/
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  6. #6
    Moderator Kolyo's Avatar
    You can use this online calculator https://www.mataf.net/en/tools/03-03-fibonacci-pivot to sort out the difference between different types of Pivot point calculated, but to explain here it will take a while, because it is not so simple… Maybe I will explain you later. I think the best way to use pivot points is to start with the simple formula and not the fancy and complicated things.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  7. #7
    Specialist Member marc's Avatar
    Thanks Micheal and Kolyo for your answers ... and for the very interesting links, thanks ...I have already read a lot about it and I am more or less also familair with the different pivot types ... so all use in some way the high/low prices of the previous day ... but my main question is when is the start of the day in forex? ... or to be more precise: shall I use GMT 0 as starting time? ... or is it better to calculate from London open or whatever? ... do you have experiences here, which you can share?

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by marc View Post
    Thanks Micheal and Kolyo for your answers ... and for the very interesting links, thanks ...I have already read a lot about it and I am more or less also familair with the different pivot types ... so all use in some way the high/low prices of the previous day ... but my main question is when is the start of the day in forex? ... or to be more precise: shall I use GMT 0 as starting time? ... or is it better to calculate from London open or whatever? ... do you have experiences here, which you can share?
    that's a tough one, I think what I would do, if I wanted to trade hourly candles, I might use a daily chart to make the pivots, and if I wanted to trade 15 minute candles I would hourly charts to make the pivots... like use the next higher timeframe to set the pivots on the chart I wanted to trade?

  9. #9
    Moderator Kolyo's Avatar
    Quote Originally Posted by marc View Post
    Thanks Micheal and Kolyo for your answers ... and for the very interesting links, thanks ...I have already read a lot about it and I am more or less also familair with the different pivot types ... so all use in some way the high/low prices of the previous day ... but my main question is when is the start of the day in forex? ... or to be more precise: shall I use GMT 0 as starting time? ... or is it better to calculate from London open or whatever? ... do you have experiences here, which you can share?
    The most useful pivots and also the most used by the big players in the markets are the daily pivot points. The best way to calculate them is to start each day candle at GMT 0. This is not a must of course, but it is good time to distinguish between two trading days, because it is the time when US session is just closed and Australia is starting, so you are right - this is the most apropriate time to use for pivot points calculation.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  10. #10
    Specialist Member marc's Avatar
    Quote Originally Posted by Michael Hodges View Post
    that's a tough one, I think what I would do, if I wanted to trade hourly candles, I might use a daily chart to make the pivots, and if I wanted to trade 15 minute candles I would hourly charts to make the pivots... like use the next higher timeframe to set the pivots on the chart I wanted to trade?
    Thanks ... I use the daily pivots on a M30 chart ... I tried to come up with some clever strategy using H4/H1 pivots on smaller timeframes, but without success

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