Hi Baz, I don’t actually use the daily Pivot as the basis for my entries, but more as a confirmation of direction. Sometimes the fibonnacci levels do provide good exit targets and help refine the choice of target/stop level.
I guess you could say that I am a ribbon trader if one has to label it. Here is an example of today’s three trades. It was clearly likely to be a very quiet day so I chose to work with the 5m chart. There have been 3 trades so far: 2 good trades away from the daily pivot with close stop levels above the ribbons and 1 more risky trade reversing back to the Pivot.
You can see that before the 3rd trade the price hung around the Pivot for quite some time before dropping away from it, but the actual timing of the trade entry was actually determined by the ribbons.
The bottom window is a basic RSI on the median price equivalent to a 13-period on a 15m chart which kind of reflects and confirms what’s happening with the ribbons (and often avoids a false move!).
So I guess you could say I use mainly just the Daily Pivot line - and only to give some overall background structure to the price direction rather than an actual trade signal.
Now that you have raised the topic, I am wondering whether it could be useful to compare the Daily pivot to the direction of the previous day’s bar even on short timeframes. I.e. if the previous day was an up day then when the short term chart is trading up there might be a stronger move as it is extending the previous day’s sentiment (and vice versa). I haven’t looked at that before so…