bluedemon77,
I second everything steve46 wrote. Haven't read Mark Fisher but, I found John Person's writings and webinars of value in learning how to use pivots. My 2 cents:
1) Figure out the best High, Low and Close to use to calculate S3 to R3 for the particular market. Obviously, the best pivot values are the ones that more market participants use. I just find these by trial and error. For example, for 30 year TBonds, I find it best to use the High and the Low of the 24 hr electronic session, and the PIT settlement close. For the ES, I think the day session High and Low and Pit settlement work better than the 24 hr High and Low. For QM (emiNY crude), I use the day session CL numbers.
2) Person talks about using moving averages of the daily pivot (3 day vs 1 day) to give one a bullish, bearish or neutral take on the market for the next day. If bullish, targets for the high and low of the next day are R2 to S1. If bearish, R1 to S2. Watch how close these come to the actual numbers, especially in the 30 yr TBonds.
3) Pivots also can be predictive of swings of movement during market moving news events like FOMC announcement, Employment Situation numbers, etc.
attached is Person's powerpoint presentation for one of his CBOT webinars in which he talks about pivots, among other things.
I second everything steve46 wrote. Haven't read Mark Fisher but, I found John Person's writings and webinars of value in learning how to use pivots. My 2 cents:
1) Figure out the best High, Low and Close to use to calculate S3 to R3 for the particular market. Obviously, the best pivot values are the ones that more market participants use. I just find these by trial and error. For example, for 30 year TBonds, I find it best to use the High and the Low of the 24 hr electronic session, and the PIT settlement close. For the ES, I think the day session High and Low and Pit settlement work better than the 24 hr High and Low. For QM (emiNY crude), I use the day session CL numbers.
2) Person talks about using moving averages of the daily pivot (3 day vs 1 day) to give one a bullish, bearish or neutral take on the market for the next day. If bullish, targets for the high and low of the next day are R2 to S1. If bearish, R1 to S2. Watch how close these come to the actual numbers, especially in the 30 yr TBonds.
3) Pivots also can be predictive of swings of movement during market moving news events like FOMC announcement, Employment Situation numbers, etc.
attached is Person's powerpoint presentation for one of his CBOT webinars in which he talks about pivots, among other things.