Pivot Points vs. Support/Resistance

[ramrocket]

Can somebody elaborate the difference between Pivot Points and S/R?

[broberson]

Pivot points are calculated using a formula. They can be used on any timeframe, but I think they work best on daily charts. They are calculated using the data from whatever chart you are using.

http://www.piptrader.com/forex_educa...ivot_point.asp

That kind of explains how Pivot Points are calculated. Most charting softwares will do it for you automatically and if it doesn't, you can find several free pivot point calculators on the web.

Support and resistance lines are areas where price has had a hard time getting through. The higher the time frame you go, the stronger the support or resistance. In my opinion, support and resistance areas are more reliable levels because they are used by more traders than pivot points.

[ramrocket]

Originally Posted by broberson

Pivot points are calculated using a formula. They can be used on any timeframe, but I think they work best on daily charts. They are calculated using the data from whatever chart you are using.

I use support & resistance in my TA and charts but didnt quite understand the value of pivot points. Perhaps counter productive to be using both.

[topchess]

I think anything that's pivotal for price. We can also think this way that Support and Resistance are pivot points.

It's any pivotal level for price where the price can breakout or make a turn.

[honeb]

i agree with topchess

fib levels, pivot points, support resistance (high/lows), moving averages, maybe even Parabolic Sars... these are all important levels but trying to graph them all and trade buy them can definately be counter productive. if you are a news trader or day trader then Pivot points might be something worth watching since the change daily.

i am a swing trader to i use moving averages, support/resistant levels and fib levels to locate my pivital areas.

you probably wont see the value in trading PPs unless you trade daily charts. download VTtrader platform (it free). they have pivot points. see what they look like on a 15min chart and a 1 hour chart. you will notice what the price some times bounces of these levels during ranging and even volatile market movements.

[ramrocket]

Originally Posted by honeb

download VTtrader platform (it free). they have pivot points. see what they look like on a 15min chart and a 1 hour chart. you will notice what the price some times bounces of these levels during ranging and even volatile market movements.

I am using VTtrader but I dont like their pivot indicator makes your price chart messy when you attach it so I'm sticking with S/R for now.

[honeb]

lol, i remember in another thread that you mention that you used VT.lol sorry. anyways, if you find drawing in your own S/R levels then stick with it. do you use any other S/R indicators to verify? and do you trade the 15h and 1H charts?

[ramrocket]

I just use std S/R indicator and trade using the daily and 1H charts because of my job. Elang has a great system posted here on this site I am incorporating his ideas.

[topgun]

I use a similiar version of Elangs system only with ADX instead of MACD. I rather plot quick FIBO lines from the swing high/low which most charting software supports, than manually calculating Pivot Points and adding them to my charts. I haven't found PP's on Oanda which is another reason I don't use them

Originally Posted by ramrocket

I just use std S/R indicator and trade using the daily and 1H charts because of my job. Elang has a great system posted here on this site I am incorporating his ideas.

[ramrocket]

Originally Posted by topgun_68

I use a similiar version of Elangs system only with ADX instead of MACD.

topgun, what advantages have you seen using adx instead of macd? do you confirm on d-/d+ crossing?