Pivot point vs S&R

Hey Guys,

Quick question, i tried looking this up but i am still little confused.
pivot point and S&R are they the same thing?
does it become redundant using both of them together?
which one is preferred to monitor price bounce/reversals in 1 or 4 hour chart?

as always thanks for the help…

Hi Grozny.

No - they’re not the same thing at all.

The “S&P” is a US share index. I think probably you meant “S&R”, referring to “support and resistance”?

The answer’s still no, though - pivot points are not at all the same thing as support and resistance.

The key difference is that “pivot points” are theoretical and an [I]artificial construct[/I], whereas recent points of S/R are [U]factual and objective[/U].

All my own trading is based around levels of S/R (or at the very least takes them into account), but personally I don’t touch “pivot points” with a barge-pole. (Not everyone will agree with me, needless to say! :wink: ).

Thanks for the reply Lexys :slight_smile:

haha yeah i meant S&R, my bad :frowning:

ok follow up question, if you trade 1 hour chart what time frame would you prefer to draw S&R on? 1hr, 4hr or 1day?

thanks for the help, u r the best :smiley:

Yes - those three, starting with one-day, then H4, and transfer those lines onto the H1 chart from which I’m trading (adding in the ones from that chart, too).

I recommend - if possible and convenient - using some kind of “colour-scheme” (or maybe “line-thickness scheme”?) to be able visually to emphasise levels of S/R according to (a) their recency and (b) their “number of touches”, since I’m convinced that these are two factors very significant in determining whether past S/R will also turn into future S/R. It’s really handy, to be able to see that at a glance, and once you’ve worked out how to do it - admittedly a work-up! - it [U][I]does[/I][/U] become quick and easy, and it enables you to “recognise” at a glance the [I]likelihood[/I] of such levels “really mattering”. Which is what we all want to know?

(I’d also look at the high-point and low-point of the last three or four days collectively - perhaps depending on what day of the week it is - and do the same with those.)

ok great thanks that very helpful,

one more question: once the S&R lines are drawn how often do you re-draw them? every day? every week?

ok great thanks that very helpful,

one more question: once the S&R lines are drawn how often do you re-draw them? every day? every week?

Although Lexy has been very helpful here with the above post, you can easily get the answer to your question by just looking at the charts of which you have started to draw your S&R levels on.

Common sense would suggest that once these previous S&R levels have been broken, for whatever reason, you would look at drawing the next batch of S&R levels to where price is approaching.

As Lexy mentioned, just because an S&R level has been surpassed, it does not mean that it has ‘[I]no importance[/I]’ anymore as past resistance can turn to future support (the opposite is true).

Play around on the charts - you will learn [U]a lot[/U] rather than being told the answer to what really is an [I]approachable question[/I]

I leave them on my charts, myself - I trade only 5 instruments (at the moment) and over 70% of my trades are on one instrument, and I just leave them there, look through each morning and delete two or three old ones and add a couple of new ones (sometimes one from overnight highs/lows, sometimes not so much).

As Jezzode mentions above, I sometimes remove ones that have been well breached (especially if “cleanly” rather than by “third breaks” or whatever).

Frankly, I am not concern about pivot point even I don’t consider intraday support and resistant levels (H4 and below) in my live trading! I basically use swing trading style here, so daily time frame is my favorite time frame! And I draw support and resistant levels by horizontal lines on D1!