viclondon
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This is interesting, I will have a look at it
viclondon
Active member
- Messages
- 218
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- 4
I have recieved a few questions regarding pivot points, so I am pasting what I wrote, just in case it could be useful for someone following this thread.
The floor pivots are actually 5 or 7 horizontal lines: Support 1,2 and 3, pivot, resistence 1, 2, 3. Some people skip S3 and R3 which rarely come into play, but are still useful.
With TS you can specify if you want the 5 or 7 (in IMO 7 is better).
The trader pivot are my main weapon, but there are some caveats, which I have carefully explained in the first few pages of my thread. The main problem is that some people use the pivots from the market hours plus pre market, while others use the 24 hour action (which generally give different pivots). I do watch both of them and find that I get by far the best results when both set of pivots line up (as it was the case today).
To make things a bit more complex, it is advisable to also draw the weekly and monthly pivots. When one of this lines is between daily levels, it is a bit of a mess as one doesn't know if the price is going to react according to the daily or the longer timeframe pivot; much better when the weekly or monthly falls within a few point of a daily level, in this case reinforcing it.
Finally I draw the mid points between all the daily levels and use them as target lines.
The floor pivots are actually 5 or 7 horizontal lines: Support 1,2 and 3, pivot, resistence 1, 2, 3. Some people skip S3 and R3 which rarely come into play, but are still useful.
With TS you can specify if you want the 5 or 7 (in IMO 7 is better).
The trader pivot are my main weapon, but there are some caveats, which I have carefully explained in the first few pages of my thread. The main problem is that some people use the pivots from the market hours plus pre market, while others use the 24 hour action (which generally give different pivots). I do watch both of them and find that I get by far the best results when both set of pivots line up (as it was the case today).
To make things a bit more complex, it is advisable to also draw the weekly and monthly pivots. When one of this lines is between daily levels, it is a bit of a mess as one doesn't know if the price is going to react according to the daily or the longer timeframe pivot; much better when the weekly or monthly falls within a few point of a daily level, in this case reinforcing it.
Finally I draw the mid points between all the daily levels and use them as target lines.
