Pivot Points

[DAM]

I have been using OANDA's daily pivot points as the basis of my trading, but have now learned that these are not the best points to be using due to the open and close times they use to calculate. (use OANDA because I have a mac)

So searching out other points, including calculating my own, I have found that there is variation in points from site to site. This is worrying as these are pretty much all I trade on, and am looking to go live soon.

So I came upon these points, and was wondering if they are worth using (the daily in particular). So to pivot point traders, do these points match up with yours?
http://www.actionforex.com/technical-analysis/pivot-points/pivot-points-summary-200603205734/

 

[Shakone]

Yeah the daily ones from there are useful.

One thing though. Don't go live yet if you're not entirely comfortable about which pivots to use. Because that will play on your mind when things are not going well, and you might start tuning your system on the fly.

 

[DAM]

Thanks for the input

I'm going live with an inconsequential account size. I will be sure that I am comfortable with the pivot points I am using before I do start trading that account though.

 

[rawrschach]

I fail to understand how calculated pivot points could be any use for FX so (unless I'm wrong) it probably won't make a difference...other than giving a random reference price á la TRO's methods.

 

[zupcon]

I fail to understand how calculated pivot points could be any use for FX so (unless I'm wrong) it probably won't make a difference...other than giving a random reference price á la TRO's methods.

Did you apply any sort of statistical analysis before reaching that conclusion ?

 

[rawrschach]

There is no reason why any set of lines which has a consistant systemic distribution would have a statistically better or worse outcome than conventional pivot points barring outcome variance inherent in any statistical analysis over a discrete period.

Which is why there are so many different types. My point is, it doesn't matter if Oanda's are 'wrong', if you know how to trade them there will be no statistically significant difference. Hell, they could call them 'Oanda Pivots' and charge you extra.

 

[DAM]

I have found OANDA's pivot points work quite well for me, so wanted to figure out how they calculate them.

Found out that the pivots are calculated at 4:00 GMT, or 23:00 EST. Is there method to this madness? Would like to know if there is because I would prefer to continue using these pivots.

 

[rawrschach]

If they work for you then use them.

 

[zupcon]

There is no reason why any set of lines which has a consistant systemic distribution would have a statistically better or worse outcome than conventional pivot points barring outcome variance inherent in any statistical analysis over a discrete period.

So in conclusion, its an opinon thats being expressed rather than a known fact.

 

[rawrschach]

If you think statistical analysis can yield facts. It is not an opinion, it is robust statistical theory.

 

[zupcon]

If you think statistical analysis can yield facts. It is not an opinion, it is robust statistical theory.

If your analysis is based on determining if swing points occur at calculated pivot levels, then you'll probably find that they are no more likely to do so than at a level selected at random. However, that particular analysis doesnt really tell the whole story, nor is it particularly useful.

 

[10pips]

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[50pips]

Anyone know where I am able to find 'formula' for the 'classic' pivot point calculations of O/H/L/C?

Am trying to create my own version of 'excel spreadsheet' pivot calculator for personal use, instead of using website calculators.

Any suggestions/help would be great. Thanks guys.

Calculation: P = (yesterday's high + yesterday's low + yesterday's close)/3 R2 = P + (yesterday's high-yesterday's low) R1 = 2 * P-yesterday's low S1 = 2 * P-yesterday's high S2 = P - (yesterday's high-yesterday's low) R2 and R1 two resistances S1 and S2 two supports, p pivot point.


Or

Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

Is that what you need ?

 

[10pips]

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