Pivot Point Trading..
- Thread starter Ripley
- Start date
so, you're implying that they can be used to trade.
But, there is no OBJECTIVITY to it. You pick 3,4 random pts from yesterdays prices and add/subtract to get 5,7 more prices. I mean.. there is NO SIGNIFICANCE to those prices. They are just points of reference for the sake of referencing.
pivot points are a tool
yes, they are effective, but like any technique (fundamental or TA) they cannot be used blindly (imo)
pivot points are areas that floor traders naturally gun for and they help identify areas where one will see price reversal or consolidation
they are definitely useful
i use them IN CONJUNCTION with market internals (nothing is more important than market internals for me) and predefined setups for entries and targets, and that is one of the ways i trade.
floor trading pivots are useful. i also use Market Profile Analysis to find key price levels. these are also very useful
but if u think using pivots means merely buying at S1 and selling at P, then u will not be an effective trader imo
and btw, i find pivots work much better for some instruments than others. why? i have my theories, but that's largely tangential to the fact that u need to understand how a specific trading vehicle works (or doesn't) with pivots and develop trading setups with positive expectancy. pivots can help do that
yes, they are effective, but like any technique (fundamental or TA) they cannot be used blindly (imo)
pivot points are areas that floor traders naturally gun for and they help identify areas where one will see price reversal or consolidation
they are definitely useful
i use them IN CONJUNCTION with market internals (nothing is more important than market internals for me) and predefined setups for entries and targets, and that is one of the ways i trade.
floor trading pivots are useful. i also use Market Profile Analysis to find key price levels. these are also very useful
but if u think using pivots means merely buying at S1 and selling at P, then u will not be an effective trader imo
and btw, i find pivots work much better for some instruments than others. why? i have my theories, but that's largely tangential to the fact that u need to understand how a specific trading vehicle works (or doesn't) with pivots and develop trading setups with positive expectancy. pivots can help do that
"But, there is no OBJECTIVITY to it. You pick 3,4 random pts from yesterdays prices and add/subtract to get 5,7 more prices. I mean.. there is NO SIGNIFICANCE to those prices. They are just points of reference for the sake of referencing"
false
(i am referring to index futures). pivots were DESIGNED by floor traders, not some TA guru, as an easy on the floor method (since, especially back before laptops and hitech, floor traders did not have any computer access) to have key reference levels to gun for or fade
if u understand how the floor dynamics work in terms of ebb and flow of orders, and pain/pleasure cycle of traders, you will understand why they work (for many index futures)
false
(i am referring to index futures). pivots were DESIGNED by floor traders, not some TA guru, as an easy on the floor method (since, especially back before laptops and hitech, floor traders did not have any computer access) to have key reference levels to gun for or fade
if u understand how the floor dynamics work in terms of ebb and flow of orders, and pain/pleasure cycle of traders, you will understand why they work (for many index futures)
ror^2
An interesting exercise is to markup the pivot levels onto a chart with overlaid volume profile. My impression is that volume tends to cluster just above or just below a pivot level to a greater degree than what one could expect if it were just random. This proposition could be backtested and would be a good starting point for investigating pivots.
As Whitster stated pivots seem to be more applicable to some markets than others. I think they are particularly relevant to the asian futures markets.
As Whitster stated pivots seem to be more applicable to some markets than others. I think they are particularly relevant to the asian futures markets.