Pivot Point advise for longer than a day trade

[Number1barginboy]

Afternoon all and a happy NY !

Ive been dabbling with various instruments, indicators and charting software as of late.

Been taking an interest in the pivot point calculation and studied it a little but have a question.

I know that it is ideally suited for day traders but i feel it could be more reliable if it was taken over a longer time period. I understand the workings for weekly and monthly PP but has anyone got a better idea as to how i could get (in affect a daily PP) an average of the daily mean with out having to do it on a daily basis ?

ie, trade the week on a weekly, monthly and effectivly a daily pivot with out having to do the calculation for the daily every day ?

Im looking to use it for trading 2, 3 days to 2, 3 month in length and not day trade so will be using end of day data.

Any help or ideas would be welcome

 

[Black Swan]

Afternoon all and a happy NY !

Ive been dabbling with various instruments, indicators and charting software as of late.

Been taking an interest in the pivot point calculation and studied it a little but have a question.

I know that it is ideally suited for day traders but i feel it could be more reliable if it was taken over a longer time period. I understand the workings for weekly and monthly PP but has anyone got a better idea as to how i could get (in affect a daily PP) an average of the daily mean with out having to do it on a daily basis ?

ie, trade the week on a weekly, monthly and effectivly a daily pivot with out having to do the calculation for the daily every day ?

Im looking to use it for trading 2, 3 days to 2, 3 month in length and not day trade so will be using end of day data.

Any help or ideas would be welcome

This makes no sense, the daily pivot is the daily pivot, are you after a weekly pivot, a monthly pivot? Bizarre...In relation to the daily you're not *manually* calculating it and drawing it are you? Oh, and why are you so sure it's more useful for day trading?

 

[forker]

Don't bother with pivot points. You are better off using support\resistance.

 

[Number1barginboy]

This makes no sense, the daily pivot is the daily pivot, are you after a weekly pivot, a monthly pivot? Bizarre...In relation to the daily you're not *manually* calculating it and drawing it are you? Oh, and why are you so sure it's more useful for day trading?

I confuse my self most of the time !

All the documentation and literature i keep reading about is calculated around the daily PP with the new weekly and month PP worked out off the back of that so would always change daily ? No ?

I have read if the trade range is close to a number of these PP consolidating together then there is a higher probability of a big market change but as im end of day data man at the moment the Daily is pointless to me ! Im assuming i still need to know the daily PP for an indication of when to enter a position when weekly / monthly PP are close together !

So what would you advise ? and yes i am working the D/P manually ?

 

[Black Swan]

I confuse my self most of the time !

All the documentation and literature i keep reading about is calculated around the daily PP with the new weekly and month PP worked out off the back of that so would always change daily ? No ?

I have read if the trade range is close to a number of these PP consolidating together then there is a higher probability of a big market change but as im end of day data man at the moment the Daily is pointless to me ! Im assuming i still need to know the daily PP for an indication of when to enter a position when weekly / monthly PP are close together !

So what would you advise ? and yes i am working the D/P manually ?

Don't know of a charting package that doesn't calc. the daily P. for you and put it on the charts with support and resistance (1-3 levels). So that's that part taken care of. Now then, what the pivot can teach you, indicate for you, how it *reacts* (or doesn't) to current price is a whole different issue which you can only deduce with practice and experience.

In Blue Peter fashion here's a trade I took this morning which may help and also indirectly illustrate why you might prefer not to use these levels. Cable trade taken off the 1hr TF, I liked the PA as it moved off/through the daily pivot. Believed it had a good chance (based on the hundreds of times I've seen price do it) of reaching the next level, in this case R1. Which it did Hurrah!! Er no, not quite. My target of 15,600 was then reached/breached, then R2 so I left circa 50 pips+ on the table (well actually closer to 30 as 15,600 was my target). Was it because working on the smalls I place too much emphasis on levels that caused me to puke too early? Possibly, highly probably, and most short term small TF trades I take I tend to work like this, profitable but unbelivably annoying at times...

Why pay attention to levels and the pivot? Because, in theory, that's where the big boys go shopping and hunting. They don't stare like goats for hours and wait for the stoch, macd, rsi and adx to all line up to shine some eternal light on price to guide it one way or the other, these levels, including the big MAs, are where they're more likely to play (outside of the big fundy decisions which some of them are responsible for making).

Oh and make sure you understand what the pivot is, a starting point perhaps for the daily toil? Could you look for price to deviate from the mean in a sharp manner for price action to be taking place?

 

[Number1barginboy]

Don't know of a charting package that doesn't calc. the daily P. for you and put it on the charts with support and resistance (1-3 levels). So that's that part taken care of. Now then, what the pivot can teach you, indicate for you, how it *reacts* (or doesn't) to current price is a whole different issue which you can only deduce with practice and experience.

In Blue Peter fashion here's a trade I took this morning which may help and also indirectly illustrate why you might prefer not to use these levels. Cable trade taken off the 1hr TF, I liked the PA as it moved off/through the daily pivot. Believed it had a good chance (based on the hundreds of times I've seen price do it) of reaching the next level, in this case R1. Which it did Hurrah!! Er no, not quite. My target of 15,600 was then reached/breached, then R2 so I left circa 50 pips+ on the table (well actually closer to 30 as 15,600 was my target). Was it because working on the smalls I place too much emphasis on levels that caused me to puke too early? Possibly, highly probably, and most short term small TF trades I take I tend to work like this, profitable but unbelivably annoying at times...

Why pay attention to levels and the pivot? Because, in theory, that's where the big boys go shopping and hunting. They don't stare like goats for hours and wait for the stoch, macd, rsi and adx to all line up to shine some eternal light on price to guide it one way or the other, these levels, including the big MAs, are where they're more likely to play (outside of the big fundy decisions which some of them are responsible for making).

Oh and make sure you understand what the pivot is, a starting point perhaps for the daily toil? Could you look for price to deviate from the mean in a sharp manner for price action to be taking place?

Sharescope Gold, Agreed, i need to update my management software another level to achieve automatic cal of PP. Wanted to play around with a few set ups before more out lay.

You seem far more advanced than myself and no doubt out going cost for you in trivial compared to profit being made. Myself i am back to the drawing board, reading up and replanning my strategy after over trading and getting burnt ! I know it happens to most more than once or twice before learning from their mistake but i dont want to keep up a losing methodology and stay in denial while money goes up the wall.

So i take it from your comments you do think PP mixed with candlestick charting and formations do give a higher chance and more reliable indication of getting in at the top or bottom of a possible trend ?

I understand your comments regarding focusing to much on your target price and hence not letting it run but safe profit is good profit for me at the moment ! build up the confidence levels again.
Thats another reason i want to trade them on a bigger time frame, ie 2, 3 day to 2 , 3 months ! Im assuming it will be less nervy and less emotions invalid.

What time frames and calculations would you use or advise on if you were to use PP on a
day to month basis, 2 day PP, 1 week and 1 month or just maybe 1 week, 2 week and month ?

Any advise or criticism from a seasoned individual like your self is more than welcome

 

[Black Swan]

Quick reply, pressed for time; you can get Pro Real Time from IG for free if you place 2 trades a month. So in theory you can puke them less than a tenner a month to get the software which would normally be 30 quid + a month direct from PRT and (imho) as humble retail guys it's more than adequate (in fact it's boss) IF you're not scalping/trading off anything from 1-10 min TFs and don't need super speed/1 pip current market price accuracy on FX.