Hi there,
Newb question on pivot points: i don't understand why they are considered a "leading indicator" when they too are based on averages?? I based some exits on them last week though and it did seem to work.
~M
try plotting some lines at random levels, then repeat whatever analysis you did that led you to believe pivots where "useful".
If you can prove a statistically signifcant difference between the random lines and the pivots, I'll post a picture of my **** on t2w.
What a feckin surprise that price is either above, below, or pretty much the same as it was yesterday. Who would have believed it !
try plotting some lines at random levels, then repeat whatever analysis you did that led you to believe pivots where "useful".
If you can prove a statistically signifcant difference between the random lines and the pivots, I'll post a picture of my **** on t2w.
What a feckin surprise that price is either above, below, or pretty much the same as it was yesterday. Who would have believed it !
Quite true - in fact it is amazing how well random lines work! Or rather not when you look at the amount of price points, a little leeway either side and a few cognitive bias.
Most practitioners of TA do not do the sort of testing you describe. When you see randomness 'work' as well as mathematically derived price points, then you have to have a total re-think.
BTW - no photoshopping that pic to make it bigger.
The points raised are probably correct,but that does not mean they dont work, pivots and fibs can be made to work. one thing about pivots is how they are calculated. It totally depends on the software you are using.some will take from 12am to 12 pm and others from the exchange open and close. So if you look at it that way and that forex is 24 hrs,pivots are total B3llocks. Fibs will have more reliability about them simply because people look at them and trade of them. They are often also areas of resistance which adds strength to them
Just out of interest, do you share the same opinion about fibonacci as I have always felt just the same way about fibs as your last point