StockBaron
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Pivots on FX is crazy for the next 3 trading days as youir gonna get whipsawed to destruction.
Hi Faris,
How are you? Hope weather is starting to turn for the better for you folks. Pivots holding up well. Some nice bounces today prior to hard breakthrough. Be nice if we could get a long(er) term trend going - seeing some signs of that.
Regards
(Granddaughter is fine - thanks for asking)
How are you? Hope weather is starting to turn for the better for you folks. Pivots holding up well. Some nice bounces today prior to hard breakthrough. Be nice if we could get a long(er) term trend going - seeing some signs of that.
Regards
(Granddaughter is fine - thanks for asking)
hey noises! ....it's been good for quite a few pips this week (trading excl off it), in fact coupled with accompanying t/a the break down from it early Tues a.m has seen the trend for the week!....you'll require a wheelbarrow to cart yer booty away this week! Any chance of someone putting forward some trading 'rules' with reference to trading pivots (anyone done any back testing/optimising etc?):
Here's a few questions to get started:
At what stage would an open or long position be traded when price penetrates a pivot point
Is the 'main' pivot only used to take an initial position dependent upon where price is
Is it possible to use pivots to identify price reversals and if so - how?
After having a great first week trading FX i got totally out of control-got gready and have paid the price. I'm looking to really focus on pivots from now on in order to put some discipline in to my trading regime- any response to the aboove ?'s would be appreciated.
Cheers
Mick
Here's a few questions to get started:
At what stage would an open or long position be traded when price penetrates a pivot point
Is the 'main' pivot only used to take an initial position dependent upon where price is
Is it possible to use pivots to identify price reversals and if so - how?
After having a great first week trading FX i got totally out of control-got gready and have paid the price. I'm looking to really focus on pivots from now on in order to put some discipline in to my trading regime- any response to the aboove ?'s would be appreciated.
Cheers
Mick
TheBramble
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mik1973 - a quick digression from FX and pivots.
It isn't your pivots you need to focus on. If you got greedy, it's your risk:reward and/or your money management.
Good points raised though. I'm also keenly following this thread as a newbie to FX.
It isn't your pivots you need to focus on. If you got greedy, it's your risk:reward and/or your money management.
Good points raised though. I'm also keenly following this thread as a newbie to FX.
back up the thread, you'll see noises49 (& zigglewigler) have given a brief outline on the most advantageous way Pivot can be utilised on trading FX....as Newtron Bomb commented, "it's how you apply them" & whether you use them exclusively or incorporate them into part of your overall trading plan.
No doubt noises will outline his method of using Pivot in his trading style. Personally, I am 'aware' of Pivot & use it (the main pivot only) as a guide in establishing a position on cable. I have been observing the reaction to Pivot (as a sidenote) on cable for some weeks now, and it has produced good, consistant results.
Like any form of pattern/indicator usage, it has it's failings (unfortunately, nothing works all of the time), but the main thing I've found, is that as long as I apply my own rules (trend observation/good stop management/stake maximisation), and continually follow them, then in the long haul I will maintain consistancy.
I don't use the s/r pivot points as I have found them to be unreliable...moreover preferring to observe the natural round number/high, low/fib breaks on the chart for entering & maintaining positions.
Each of us has our own individual styles/trading plan & no one "statement" will 'fit all'.....but I would certainly reccommend observing the Pivot on your chosen pair & see how it reacts away from the level. I trade exclusively 'cable' & can only feedback my own observations, but it has (along with my own signals) confirmed direction on a good percentage of occasions.
http://www.fabrefactum.com/pivotpoints.htm
the above might help (for those not familair with Pivot) to clarify a few points.
No doubt noises will outline his method of using Pivot in his trading style. Personally, I am 'aware' of Pivot & use it (the main pivot only) as a guide in establishing a position on cable. I have been observing the reaction to Pivot (as a sidenote) on cable for some weeks now, and it has produced good, consistant results.
Like any form of pattern/indicator usage, it has it's failings (unfortunately, nothing works all of the time), but the main thing I've found, is that as long as I apply my own rules (trend observation/good stop management/stake maximisation), and continually follow them, then in the long haul I will maintain consistancy.
I don't use the s/r pivot points as I have found them to be unreliable...moreover preferring to observe the natural round number/high, low/fib breaks on the chart for entering & maintaining positions.
Each of us has our own individual styles/trading plan & no one "statement" will 'fit all'.....but I would certainly reccommend observing the Pivot on your chosen pair & see how it reacts away from the level. I trade exclusively 'cable' & can only feedback my own observations, but it has (along with my own signals) confirmed direction on a good percentage of occasions.
http://www.fabrefactum.com/pivotpoints.htm
the above might help (for those not familair with Pivot) to clarify a few points.
an addition to the above :
discussions in the trading room over the past few weeks have raised several points regarding our approach to Fx & our expectations etc.....FX is merely (another) instrument in which to enhance potential income/profit. Like any other tradeable candidate, it has it's good & bad points. To quote our friend NB (again!!), "what is important is how you apply your indicators & cope with the psychology of trading as a business"
Pivots/2b/123 reversals/h&s/directional indicators.....they're tools, merely guides to focus our attention on PRICE! it's the Money Management/Risk-Reward/Psychology scenario which will ultimately return profit or loss.
Whether we choose Pivots as our 'chosen' guide or not, the main thing is to research & plan our trades accordingly. PRICE is the only god when we lay down our dosh, and it's the discipline & control inside our head which will determine the end result, not whether we follow pivots/123's or any other pattern or indicator!
FX just happens to offer us an extremely attractive arena in which to nurture potential profit, it isn't the be all & end all.....we still have to maintain rigid discipline & control over our trading plan! Those who do & have traded equities/Indices & used their t/a on those instruments will find FX a pleasure to trade. But at the end of the day, it's a vicious & disrespectful animal if you abuse it!!
right, that's my rant for the weekend, time to enjoy the sun, have a good weekend!
discussions in the trading room over the past few weeks have raised several points regarding our approach to Fx & our expectations etc.....FX is merely (another) instrument in which to enhance potential income/profit. Like any other tradeable candidate, it has it's good & bad points. To quote our friend NB (again!!), "what is important is how you apply your indicators & cope with the psychology of trading as a business"
Pivots/2b/123 reversals/h&s/directional indicators.....they're tools, merely guides to focus our attention on PRICE! it's the Money Management/Risk-Reward/Psychology scenario which will ultimately return profit or loss.
Whether we choose Pivots as our 'chosen' guide or not, the main thing is to research & plan our trades accordingly. PRICE is the only god when we lay down our dosh, and it's the discipline & control inside our head which will determine the end result, not whether we follow pivots/123's or any other pattern or indicator!
FX just happens to offer us an extremely attractive arena in which to nurture potential profit, it isn't the be all & end all.....we still have to maintain rigid discipline & control over our trading plan! Those who do & have traded equities/Indices & used their t/a on those instruments will find FX a pleasure to trade. But at the end of the day, it's a vicious & disrespectful animal if you abuse it!!
right, that's my rant for the weekend, time to enjoy the sun, have a good weekend!
Fellow Pivot Traders:
Good overview of Pivot Trading at this link:
http://www.amazon.com/gp/reader/047...8967?v=search-inside&keywords=Pivots&x=12&y=6
Good overview of Pivot Trading at this link:
http://www.amazon.com/gp/reader/047...8967?v=search-inside&keywords=Pivots&x=12&y=6
Pivot Range
Here's an expansion of pivot trading using a "range" instead of a single price point. The center of the range is the pivot, the top and bottom of the range become entry/exit stops. Price within the range = neutral/flat. Wait for movement outside the range to establish position. Following formulas apply:
Pivot Range = Pivot +/- "Differential"
Differential = ABS (Pivot - (Daily Range/2))
Example is from last week's trading.
Here's an expansion of pivot trading using a "range" instead of a single price point. The center of the range is the pivot, the top and bottom of the range become entry/exit stops. Price within the range = neutral/flat. Wait for movement outside the range to establish position. Following formulas apply:
Pivot Range = Pivot +/- "Differential"
Differential = ABS (Pivot - (Daily Range/2))
Example is from last week's trading.
Attachments
Interesting concept noises- i guess the range would replace the traditional s/r pivot calculations. I'd like to look into this trading approach further. What position would you take if price opens high in the range or low in the range. Alternatively what happens if a price is trading very close to the actual pivot line. Any examples you could give with "idiot guide" explanations would be appreciated.
Cheers
Mick
Cheers
Mick
Mick,
The theory is the range acts as a buffer - so stay "flat" as long is price is within it. Use the breakouts as entries, with the pivot or opposite side as your stop. If price is/closes outside the range, take a position if market is trending away from pivot or use 4 pts for entry. The range trade may smooth the process out - pivot hits can be tricky little devils. Let's track it closely in the coming days! (Check the link a few posts back for more details). My experience with the trad S/R is negative - they don't seem to hold up well at all.
Regards
The theory is the range acts as a buffer - so stay "flat" as long is price is within it. Use the breakouts as entries, with the pivot or opposite side as your stop. If price is/closes outside the range, take a position if market is trending away from pivot or use 4 pts for entry. The range trade may smooth the process out - pivot hits can be tricky little devils. Let's track it closely in the coming days! (Check the link a few posts back for more details). My experience with the trad S/R is negative - they don't seem to hold up well at all.
Regards
Thanks again for your response noises. I'm still recovering from a totally undisciplined position i took on cable when it went south a couple of weeks ago. I was kidding myself at the time that things 'must' turn at some stage. I guess learning discipline from the school of hards knocks is the only way to graduate in this game.
Cheers
Mick
Cheers
Mick
hey there,,
Danced with the devil (pivot point) and got the fingers burned. Well was not quite that bad, the idea was right the entry was wrong will look at that.
Dont let this threat drift away,,,one of the best I have found on Pivit Points.
Oh if you can you might let me know what the PP was for today,,just so I can make sure I have the right number..
Regards
John
Danced with the devil (pivot point) and got the fingers burned. Well was not quite that bad, the idea was right the entry was wrong will look at that.
Dont let this threat drift away,,,one of the best I have found on Pivit Points.
Oh if you can you might let me know what the PP was for today,,just so I can make sure I have the right number..
Regards
John
Faris
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No probs John
Has been a tough day if your looking at breakouts as there have been two failures. At the moment its hovering just above the pivot.
I do incorporate pivots into my strat and was able to get an entry 1.7935 just below the pivot after the double top and ride it all the way down for +50.
Pivots are a great tool but you need to use them in conjunction with either indicators, patterns or even round numbers. On there own there not so good.
I normally use them as an indication of price direction.
Been a rangy day so far, guess everyone is waiting for the outcome of the MPC rate decision out at 12.00(uk time), then hopefully we should see a nice breakout.
Faris..
Has been a tough day if your looking at breakouts as there have been two failures. At the moment its hovering just above the pivot.
I do incorporate pivots into my strat and was able to get an entry 1.7935 just below the pivot after the double top and ride it all the way down for +50.
Pivots are a great tool but you need to use them in conjunction with either indicators, patterns or even round numbers. On there own there not so good.
I normally use them as an indication of price direction.
Been a rangy day so far, guess everyone is waiting for the outcome of the MPC rate decision out at 12.00(uk time), then hopefully we should see a nice breakout.
Faris..
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