Anybody using these and want to give me a quick walkthrough on whether they think they’re worthy to use?
I would look through Babypips and search Pivot Points theres a wealth of information on this great site
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This is a traditional approach. Why not?
You could divide “Pivots” into two separate items: the pivot level itself and the support and resistance levels associated with it.
The general point to remember is that these levels are just calculated according to a formula and, as such, are pure indicators using past data to project future direction and possible target areas.
Pivot can be used on any timeframe and are based on the high, low and close of the preceding bar. I would suggest that using them on anything less than a daily range is very unreliable.
The Pivot line is a weighted balance point of the previous day’s range. If the price is above this line in a bull market then it suggests the trend is continuing. If it is below this line in a bull market then it suggests the trend is stalling, consolidating, or even reversing. (The opposite goes for a bear trend).
There are several methods for calculating S/R lines such as Classic, Woodie, Fibbonacci, Camarilla, and so on. These 4-5 lines indicate levels that the price could reach depending on which side of the Pivot line the price is on.
The general idea is to use these lines as targets or entries, depending on one’s trading style. Do they work? Well, remember that they are calculated by a formula and markets move according to other factors than formulas. So sometimes they will work and sometimes they will not.
So my answer would be that they do provide some useful information (especially the pivot line) but should be used in conjunction with an underlying strategy as further confirmation rather than as a stand-alone trading method.
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Oh sweet, thanks for the thorough reply. Im going to give them a shot!
Was just looking at TradingView, lots of “pivot point” indicators. Any specific one to try? high low? Standard. Rob Booker Pivot Points…
I haven’t personally tried many of these more exotic variations (which tend to affect the S/R values rather than the actual Pivot value, although that is also calculated in various different combinations of O,H,L,C)
But I would suggest starting with the standard or classic settings and seeing how that works out first.
But I also repeat that it is worth combining these with another strategy which defines the direction and then consider the pivot levels for confirmation of direction and entry/exit points. I don’t think Pivots are very reliable as a stand-alone strategy especially on an intraday basis (whereas the weekly pivot levels are quite interesting though).
It would be useful to hear how you get on with these! 
You can look into your course and see if there is an option or some information regarding the same.
As with any approach, it has certain features and details, but many people use it and in general appreciate it quite highly.
I’ve come to realize it’s not one magic indicator that wins the trade!
I won’t ask you how you came to realise that! 
But you are right.
Pivots have been around a long time so if it was “one magic indicator” then everyone would be using just pivots and be very rich. And the same goes with any other indicator based on a mathematical equation.
Pivots are more like a weather vane just helping to indicate the direction of the prevailing winds, but can’t tell you how strong or for how long those winds might persist. In that sense they can provide some confluence (or otherwise) to a main strategy structure.
Lots of shall we say not winning!
The learning curve!
Just out of interest, on which TF have you been trying this out?
Sticking to daily right now. But it might be too slow. Thinking about dropping down from there. Do people trade the 8 and 12 hour timeframes, or is that just weird? Straight to 4 hour?
I think the main reason why traders talk of Daily and 4-hour is because the majority of traders appear to use MT4/5 and I think this platform does not offer 8 or 12-hour TFs? I might be wrong about this because I don’t use MT4.
But I have seen traders talk about 8-hour charts on other platforms.
I think if one is using multiple TFs then the time difference has to be sufficient to have some add-on info. If they are too close then one just becomes a slower version of the other, and if they are too far apart then they are in different worlds. For that reason, I think daily and 4-hour (or 1-hour) form a suitable combination, as would be weekly/daily.
The issue of which TF to use depends so much on one’s trading strategy, there is no “right answer”. For example, an hourly chart gives you 24 candles per day and that can offer a host of different signals and purposes. But all that same info is wrapped up in one candle on a daily chart and becomes almost non-existent and just meaningless, intraday “noise” to a daily chart trader.
What is your trading strategy based on?
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I have used different indicators so far but I find pivot points as the best ones as they help me determine the overall trend of the market over different time frames. The indicator has helped me in a lot of my trades in the past also.
I see that pivot indicators help determine the market trend, but Is it really worth using it?
Not something I have previously used I have to say but would like to test out on a demo perhaps
In my opinion that is a very good question. When there are so many ways to add structure and definition to price movement it is important to ask exactly that: “Is it worth it, or is there something better”?
PA perhaps tends to be more subjective than indicators based on mathematical formulas and so when considering indicators it is not sufficient just to ask “do they work?” but also “is there a better alternative”? It is always best to avoid multiple indicators which are designed to tell the same thing. They will often fudge the issue.
I have not personally found pivots much use in defining a trend but can be one indication of the current health of an identified trend. However, in a ranging market they can be very troublesome.
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I find it worth because the pivot helped me determine the overall trend of the market over several time frames. I suggest trading with standard or classic settings to check how it works out.
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