Pivot Points

Who uses pivot points with their trading? I am now using them as part of the strategy I am trading but I have found automatically calculated ones (by indicators) can sometimes be a bit off from the ones on websites such as live charts. I guess this is down to not allowing for broker time differences and different time zones.

So does anyone know what time forex pivot points should be calculated? Should it be midnight to midnight GMT? Midnight to midnight EST? EDT? Or the session hours like 8-4:30 for London?

Where are you BBMac? :cheesy:

Sam.

I use the daily pivot (kind of)..but if *levels* trading I'm inclined to be more focused on the 3 levels of S&R..oh and the beast 200 MA (or EMA).

As for calculating (ignoring Monday obviously) I simply let Pro Real Time or Marketscope plot the levels of S&R + PP for me..

Hi BS,

What 3 levels of S&R are you referring to? High/low/close? And how are you using the 200MA, crossovers? Pullbacks?

As for your software calculating your levels, sure I can get any number of indicators to do that in MT4, its just most create them from (I'm guessing) midnight to midnight. But my broker is GMT+1. I can get a pivot indicator that will allow me to enter this and offset the levels accordingly, I was just hoping someone could confirm the correct time to calculate pivots first. Anyone?

Sam.

i put them on a chart on CMC to see if i liked them

i didn't... seemed like regular support and resistance is more accurate

mind you, i trade Forex, do pivot points and EMAs tend to have positive expectancy more often for shares/indices? might be something to search for in the journal of technical analysis in the holidays...

i use them all the time, especially the weeklies, can be very powerful

there are a number of ways of calculating them: tradtional "floor", deMark etc, but I use Camarilla equation

worth checking out, even if only to dismiss them as tosh
(which is what I did when I first stumbled across them, only to go back later and now I use them almost exclusively)

Thanks for the replies guys but does anybody know what time they should be calculated? It's high, low, and close right... So what are you guys using for the close? Whatever midnight is according to your broker or are you setting it by GMT? New York time or what?

Cheers!

Sam, on PRT you get 3 levels of S&R plotted - 1,2,3. The new variance on the charts now auto calculates various trend lines and weekly pivots and zones..very clearly drawn particularly if you use HA. There's also a new alert series for prices reaching S&P and zones, very useful, way above the likes of Autochartist usefulness imho. As for the daily pivot I honestly don't get too hung up about the exact method of the calc. I've used PRT for 4 years, I'm satisifed with the results and reliability; for my swing trades perfection takes a back seat to trying for excellence.

As for using S&R + P + 200MA/EMA for trading well I'm not getting into that, far too subjective..

Black Swan said:

I've used PRT for 4 years, I'm satisifed with the results and reliability; for my swing trades perfection takes a back seat to trying for excellence.

Click to expand...

That's a good enough recommendation for me to go back and have another look at them.

How accurate have piviots been in your trading plans?

put it this way, my Long marker on ES U1 this week is for when price dips below 1256.25, then set Stop entry to go Long at 1256.5


Hit my target at 1285 but I'm still in the trade in case of continuation upwards. If that fails, I'll get out at 1285 and and wait for it to rollover and go Short at 1275

For foreign exhange use New York close 5pm, with a 24-hr day. (10pm UK).

Don't include any Sunday data before 10pm re-open on UK Sunday night.