Trading Forex using Pivots

[noises49]

Angler,

Sorry, I wrote it incorrectly. Yesterday's differential was "13." Replace "daily range/2" in the
Diff formula with (High + Low)/2. That'll make it right for you. (How are things in Aussie Land? - Want to dive the Reef one of these days!) - xxxx

Regards

Noises

 

[noises49]

Zig,

Interested in what you're doing in Excel. Also, what's up with "paste graph" thread? Where would one find it?

Noises

 

[Angler]

Hi all,,

Noises49
Damn,,,you want me to fly/drive up to Queensland to go swimming,,,we have great beaches in Sydney you know,,,lol

Thanks for the update on that formula,,,,working now,,,but 13 does seem a little thin

Regards
John

 

[ZigZag]

noises49,
Go to view boards box on home page. Drop down menu then forums. Enter "posting a chart " and in the name box type " FTSE BEATER". click on search. On the drop down menu click on "posting a chart"
zigzag

 

[ZigZag]

test pivots

 

[ZigZag]

Test Pivot

Noises49,
Ooops not quite. The daily candlestick bars show the relationsip between the pivot and the close. The pivot is the open of the main body. The graph is upto date with the last bar at Fri 21 st May.
Data Source: FXCM daily candlesick bars.
More later when I sought out pasting the graph.
My thanks to FTSE BEATER on his " posting a chart " thread in getting me this far.
ZIGZAG

 

[ZigZag]

noise49,
CORRECTION: Pasting the chart has chopped off the last 20 bars. Therefore the present graph is NOT up to date. !!!!!!! Will try again later but being a beautiful day going out to mess about in the garden.

 

[noises49]

Pivot Range

Hi all,,

Noises49
Damn,,,you want me to fly/drive up to Queensland to go swimming,,,we have great beaches in Sydney you know,,,lol

Thanks for the update on that formula,,,,working now,,,but 13 does seem a little thin

Regards
John

Since I've been calculating pivot range the Diff has been as low as 2 and as high as 43. Two days ago the daily range was 227 (vs 224 for this guy), and the Diff was 30. I suspect the correlation has something to do with where the pivot is compared to the high or low. Anyway, it is helpful for setting stops (both entry and loss) when trading this sucker.

Is the diving OK in Sydney? - Probably get devoured by a shark!

Noises

 

[Angler]

Hi Noises49,,

But more important than that,,,,I sat down this morning to calc the pivot points from Marketscope daily chart and find the numbers on the chart dont match what is shown on the 60min chart,,,,The chart does not show that the price got up into the 1.7940's on Friday.

FXTrek got it right I think.

Anyone come across this also.

Regards
John

 

[ZigZag]

TEST Pivot:
Noises49:
Success in posting graph from EXCEL.
The bars show the pivot as the opening followed by the close. The graph is up to Fri 29 May.( column 97)
Data Source: FXCM daily chart.
After the close of the U.S. markets I enter Hi.Lo. Clse of the new bar (usually after 30min to 1HR) and update the charts. Once I update I only have to change the range during the session and the graphs automatically update. ( I believe there is a better way which the techies have developed. ) One of the benefits of excel is that by adding fictional range figures( during the new session) you can discover when the pivot will be reached in the future.
THe pivot chart shows the following SMAs
Green 3 SMA Pivot
Black 2 SMA Pivot ( Reason for the higher opening SMA pivot to the lower SMA is for trend indentification.
White: 2 SMA Clse
THe second graph is based on OHLC with SMAs of 2. 3 & 4.
Without counting the finite pivot method(which you employ) there must be at least 12 other methods based on the graphs and data.
It may be an interesting debate if other members add their preferences.
Regards

Euro/USD

 

[CarpeUK]

Basic Questions About Pivot Points on 4x

I am having a little trouble understanding something about PP and was wondering if anyone could help

The basic strategy as I understand it on PP/S&R is

1. Wait for the prices to reach the Support / Resistance or Pivot Point
2. Look for reversal patterns,
3. and then go long (short) with a stop

The 3 questions I have about this is

What is meant by a reversal? Is it, wait until it hits or goes through a PP or S/R level then heads back in the opposite direction? E.g., rises (long) to 109.53 or passes this then does a u-turn and starts to drop (short)

In addition, where can I find the close price because in effect the 4x market does not close so therefore there is no close price?

And the final question is what would be the best chart settings to see/catch the reversal to enter the trade

Sorry for the basic questions all but this has been bugging me for a while.

Thanks for the help
CarpeUK

P.S
If anyone has a chart to hand that shows a reversal so I know what to look for that would be nice

 

[red snapper]

Thanks again noises.
Just to clarify, are you looking for a trading bar to penetrate the pivot point before you make a decision to go short or long. If for example the bar went throgh the pivot in a southerly direction would you go short for the day (and vice versa)? How would you deal with stops?
Is the Pivot line the only line you deal with- and that you would ignore all of the others?
If my understanding is correct you may have long periods of time before the pivot line is penetrated- however if this is a profitable strategy then it is probably worth waiting for.
I am genuinely interested in this topic and feel that it could prove beneficial- i just need to get a better understanding of Pivots.
Thx in advance,
Mick

Hi Mick - I too am pretty new to all this and am particularly fascinated with pivots. I found a snippet on Youtube explaining the fundamentals on Pivot Lines. I'll see if I can find a link tomorrow. It would appear to me that they can be both highly effective and on other occasions - quite the opposite

the chap explaining it all used the next line (Support or Resistance: depending on which way you are going) as the profit target for the trade. On some occasions the trade might not reach the next line, on others bounce off S1 or R1 or kick on to the S2 or R2. If the trade stalled and fell back through the Pivot initially, he would close out the trade for a modest loss - no more than 10 ticks in his opinion - with a potential upside of 4 or 5 times that.

He also talked about channels - which I don't know to much about either - but on one the charts I was looking at today ( I think USD/GBP) there appeared to be a clear support level between the Pivot and S1 - can't really remember which day or chart - but could find out.

Hope this helps. Apologies if any of what I am saying is factually incorrect - go easy on the New Boy. Looking forward to any further advice on this.

Red

 

[forexmilio]

hello
in my openion you cannot just depend on the pivot or charts

 

[Vaco]

pivot point bounces are successfull about 50% of the time, as with all indicators they provide a line in the sand telling you when to trade, this stops the novice from trying to trade every move all day and getting wiped out.

If you stick to 1% risk set your stop to approx half to a third of your ave winner you will come out on top.

Accross the range of diffeent market conditions no indicator will give you a better then 50% win rate.

 

[rathcoole_exile]

The basic strategy as I understand it on PP/S&R is

1. Wait for the prices to reach the Support / Resistance or Pivot Point
2. Look for reversal patterns,
3. and then go long (short) with a stop

or option 4)
wait for price to reach S/R or PP and BLOW right through it

:clap:


or there's even option 5), which I'm sure most less-experienced traders won't want to hear about or consider -
wait for price to reach S/R or PP and DO NOTHING :clap:

good luck, hope it helps

 

[rathcoole_exile]

If anyone has a chart to hand that shows a reversal so I know what to look for that would be nice

no fancy "signal indicators" but does, imho, emphasise the importance of PPs as trigger points and/or targets

 

[rathcoole_exile]

no magic signals

 

[rathcoole_exile]

no magic signals

.

 

[Vaco]

P.S
If anyone has a chart to hand that shows a reversal so I know what to look for that would be nice

The broken black line is todays pivot point as generated by my charts not drawn in by me.

 

[markjames]

Have you guys seen the Pivots module supplied by Home Page for Metatrader. It works out your daily pivots automatically and draws them on your charts. I downloaded it recently and it saved me loads of time every day messing about calculating pivots and drawing lines etc. According to the web site there is an automated version coming out soon which will allow people to set up automated trades based around the pivots.

In terms of the 50% bounce theory I think there is some validity in that provided there are other indicators which support a retrace ie a confluence of events.

Anyway, good trading to all you Pivot boys and girls out there.