Pivot Point Analysis/Trends

[spunkyblonde]

how long have you been tradeing.?

 

[james6848]

I personally have not even started trading with real money (call it -1 month!). A lot of this thread is over my head...

 

[dbphoenix]

A lot of this thread is over my head...

Perhaps you would do well to understand support and resistance first. Then you'd be able to determine what value, if any, "pivot points" have. (See pdf below)

 

[james6848]

Perhaps you would do well to understand support and resistance first. Then you'd be able to determine what value, if any, "pivot points" have. (See pdf below)

Thanks for that dbp. Conicidentally, I've just joined your Yahoo group after reading some of your other posts - I like your style!

I know what support/resistance is to an extent (enough to draw on a chart I mean), but what I have been after is an understanding of what market conditions actually lead to such things - there seems to be a general obsession with giving patterns names etc without actually working out why they arise!

 

[dbphoenix]

what I have been after is an understanding of what market conditions actually lead to such things - there seems to be a general obsession with giving patterns names etc without actually working out why they arise!

You just rolled a double and get a free turn . . .

 

[james6848]

You just rolled a double and get a free turn . . .

'Give £20 to each player'

 

[spunkyblonde]

Perhaps you would do well to understand support and resistance first. Then you'd be able to determine what value, if any, "pivot points" have. (See pdf below)

thanks dbp 4 the pivot piont pdf file .. great readeing ..mark shure knows his charts well.. sally

 

[Davidee]

Hi James,

I tested to see if there was any significance in the Pivot Point (PP) price level in the Forex Market, and I couldn't find any evidence of it. I've yet to test the support and resistance levels (S1, S2, S3, R1, R2, R3). The support and resistance lines may work, I don't know yet, but I would doubt they would be as effective as trendlines drawn on a chart. Here's the results of my experiment if you're interested http://www.myforexdot.org.uk/PivotPointAnalysis.html

 

[Trader333]

I tested to see if there was any significance in the Pivot Point (PP) price level in the Forex Market, and I couldn't find any evidence of it

This thread has not had any responses in over 4 years. However, now that you have posted a reply I am curious to know what pivot points you are using because there are several that you could use ?


Paul

 

[Davidee]

Hi,

I found this thread on google when searching for info on Pivot Points and thought I'd see if anyone wanted to restart the discussion.

I tested the typical price PP = (High + Low + Close)/3 and the weighted close PP = (High + Low + Close + Close) / 4.

My test did not show either of these to have any statistical significance on the currency pairs that I tested it on.

 

[Trader333]

Have you looked at multiple time frames and other types of pivot ? The reason I ask is that I use daily, weekly and monthly pivots using calculations for Foor pivots, Camarilla and De-Mark. What I have found is that when price approaches either a similar level across the three types or time frames that the probability of success improves. I have not conducted laboratory standard tests for this and it is just my own observations. I attach a screen shot of how it looks and the colours are when price is approaching a key level, green for support, magenta for resistance and yellow for pivot. So when I observe that price is approaching support levels on several different pivot types or several different time frames at once I will then watch the price action and maybe take a Long trade.


Paul

 

[clorets]

I use pivots on the daily forex. But its only there to help with my target profits or to support other signals. I prefer trend lines and support/resistance levels. But I'm always surprised at how well Pivots can work.