newbie person,
while dale is an honorary fxman, and we know that fxmen only date fxcheerleaders and consider themselves BMOC, dales apptitude in this world is his amazing ability to deliver hundreds and hundreds of posts per minute, on ANY subject you may raise ---- i must imagine that he can type 300 wpm, or is using voice recognition software, or both !
there is an amazing search engine that just may take over the world in a few more weeks called “google”, and as strange as the word may be, there must be hundreds of “googlettes” working in small cramped rooms, pulling all the information from around the world into their databases — amazingly, they even have a huge quantity of info on something as obscure as “pivot points”
Now to go back in history, we discover pivot points were the invention of floor traders on the stock exchanges, designed so that they could maintain an easily digestable list of “points” where a stock could move forward or reverse ---- the calculations HAD to be simple partly because of the speed needed by these fellows (NO women at that time !) and the fact that few of them actually graduated high school (and you thought you needed an MBA to trade !"
these “points” became ACCEPTED by the floor traders and with their ultra simple method of computing, depending on no more than 4th grade math, were used for what appears to be thousands of years as a strong basis for trading.
BUT ALONG CAME FOREX, and since we were dealing with WORLD economies, the bankers decided they were far better than mere 7th grade graduates (after all, they wore double breasted suits, ties and wingtip shoes) and so decided that the FIBONACCI numbers would rule the day, as in those days plotting those numbers was NOT an easy task !
all went well for at least 1500 years and then THE US CURRENCY REVERSAL HIT US !
this very recent development, with its concurrent daytrading mentality in equities, DROVE the stock exchange people into our little private world of forex and they really screwed it up, to use present day terminologies !
NOW, instead of the fibonacci numbers being king, we get a stupid mix of support and resistance numbers and some of those silly pivot points thrown into the mix, confusing the living daylights out of those who only learned the teachings of mr. fibonacci !
BUT there is relief, as one can determine easily that once a price PASSES the major daily pivot point in either direction, at some time in the day there will be a HOMECOMING DANCE (remember what i said about BMOC and fxcheerleaders ?) and the price will come home to the PIVOT POINT for another dance (ok, in trading we call it a “re-test”) and you can bet your uncles booze money on that (do you get the idea that entering a long, even when price trend is short, just MAY work out ?)
anyway, AS OF THIS PRESENT MOMENT IN TIME, support and resistance is king of the hill, with pivots thrown into the mix as a position that “should” be hit at some time, and that revered old italian gentleman, signore fibonacci, has had his numbers downgraded to “kinda sorta helpful but dont depend on them unless they align with s+r”.
well, having nothing more to add to the conversation, and probably not wanting to have delved as deeply as i did, i shall wander off down the road, studying my s+r points, and wondering when the danged “equity” people will go back to their equities and leave us forex kids alone !
enjoy and trade well
mp
[B][I]Everything that is faced will not change, but nothing will change unless it is faced.[/I][/B]
(James Baldwin)