I’m seeing lots of guys on YT and Twitter showing charts with pivot points.
I started the lesson here
But I don’t get why these work?
Pivot points are set on Fibonacci’s. Fibs are based on universal sacred geometry. When people see a support. (bottom) or resistance (top) The proper decision can be made, with a better confidence level, to invest or sell. Don’t forget to look at the sentimental value and the fundamental value as well before deciding. Pivot points, used along side other indicators, like stochastics, pattern, etc paint a better picture for the investor. Hope that helps you!
Because trading lemmings like following price action movement from order flow until the order flow increases or withers away, depending on what’s happening in fundamentals, as in currency strength.
If I follow a trend trade,I look at pivot points as to where it is likely that the trend will falter. IMO every trader should examine this.
So order flow can be taken from Highs, Lows and Close prices, since that’s how you calculate pivots?
Well, as I see it, your question is not a good question! Pivot points do work but the real question is what is a pivot point or how to find one or how to recognize the most important pivot points.
Well the indicator plots them. So there’s the answer to your “how do you recognize them?” If your price is above the average or breaks through, that’s bullish. Below the average, bearish.
Use them for support and resistance as well. They’re not only used in fx.
Good to know, thanks. Still researching the different types. There’s like 5 or 6.
Because Order flow moves price action movement. So, the stronger the flow, the higher or lower the price movement.
there are a lot of candles which an indicator shows as pivots and there are a lot of different time frames with a lot of candles, so knowing which one is the actual pivot is not a simple task!
Maybe we’re talking about two different things. Here’s the pivot point indicator on Tradingview.
The pivot points are the orange lines. The indicator I have on let’s you choose what type/style? you want. This is the traditional one.
I understand what you are saying, what I mean is that, you can easily change the settings of that indicator and get different outputs, for example, another one that I have seen which shows potential pivots is william fractials, idk the one you are using, but I’m sure that this one, just like Fractials, shows different candles if you slightly change the settings. Now the important points that which one is the one that goes well with your trading style. I hope this is clear now.
Okay, I see what you’re saying. Yes, I just went with the traditional default settings. Part of me thinks that’s probably used by most people. And if a lot of people use it, then we should see more action around those levels. But maybe I’m thinking about that incorrectly.