Hey y'all.
This is a question that has been bothering me for some time now.
In the FX, as you all know we have an Asian Session, an European/London Session and a NY Session.
Now, pivots are pretty cool with the FX but the way you calculate them can make a difference.
Most of the trading material out there indicates calculating the pivots based on the NY bank settlement price. The pivots are cool for the just starting out Asian markets, but are they still ok for the London session? The question is rational as there is a difference of about 8 hours between the start of the day in Asia and the London open.
I am not asking if they are still valid S/R points, because they are, and price does react to them right to the next day's 5 PM EST.
I am asking this because, if you, as an example, trade a break of the central pivot in the direction of the daily trend, that break may have already happened in asia, according to asian open calculated pivots.
However, if you recalculate the pivots at midnight EST, your London Open will be much closer to a central pivot point therefore you get the setup much often.
So basically, my question is: Do you have to recalculate the pivots for the session you are trading two hours prior to every session open? IT's one of the 24hour market challanges...
This is a question that has been bothering me for some time now.
In the FX, as you all know we have an Asian Session, an European/London Session and a NY Session.
Now, pivots are pretty cool with the FX but the way you calculate them can make a difference.
Most of the trading material out there indicates calculating the pivots based on the NY bank settlement price. The pivots are cool for the just starting out Asian markets, but are they still ok for the London session? The question is rational as there is a difference of about 8 hours between the start of the day in Asia and the London open.
I am not asking if they are still valid S/R points, because they are, and price does react to them right to the next day's 5 PM EST.
I am asking this because, if you, as an example, trade a break of the central pivot in the direction of the daily trend, that break may have already happened in asia, according to asian open calculated pivots.
However, if you recalculate the pivots at midnight EST, your London Open will be much closer to a central pivot point therefore you get the setup much often.
So basically, my question is: Do you have to recalculate the pivots for the session you are trading two hours prior to every session open? IT's one of the 24hour market challanges...
