I just busted my account; I’m adding pivot points to my analysis; so, far they are just pretty good indicators of support resistance (kind of draws S/R lines for you if you’re into price action), without any indication of direction. There’s several types of pivot points: Classical, Camarilla, Fibonacci, Woodie, etc. I am using Fibonacci calculations. Which one of these do you prefer to use and why?
Me only H+L+C /3,. keep it simple ,keep is ***y .Boys from NYC love them and trade on them No Touch every day . So worth having them as the indication of possible support /resistance.
#TradeSafely
I use Pivot Points on a daily basis for finding entry and exit points alongside with other indicators
I’m a huge fan of Fibonacci myself so I sometimes use the Fibonacci pivot points along with the retracement levels. I guess it’s all about figuring out which type of calculation you’re comfortable with. Sorry to hear about your account, though!
I prefer to avoid all of them, because my trading’s profitable that way.
Independent, academic studies have reliably and consistently shown that the various methods of constructing “pivot points” are no more collectively/statistically reliable than randomly drawn lines.
To show that Fibonacci (for example) works, you’d need to do a statistically significant trial comparing and calculating the proportion of occasions on which it outperforms/underperforms randomly-drawn lines. That’s actually been done, many times, but never with the outcome the Fibonacci-enthusiasts expect and want.
“Randomly drawn line theory” can be demonstrated to work really successfully, too.
But only skepchicks like me want to read about that. 
Many traders look at indicators as “holy grails”, assigning properties to them they don’t objectively possess.
The world is full of anecdotal “evidence”, and trading books/courses/videos are more full of them than most other parts of the world.
Applause…
Wasn’t gitpip deriding the notion of traders making slow but consistent returns on another thread? Well, by his own admission, trading for big profits leads to bust account.
The words “We told you so” spring to mind…Hopefully he will have learnt from this and eaten some humble pie…
I agree, Lexy, that lines on a chart mean very little per se…
I use round-number levels only, to keep things simple, and although there is no doubting that some price levels in any pair have more historical weight (like the 0.70 in EUR/GBP or the 7,000 in the FTSE100) there are many smaller, more temporary levels that may exist for only a short space of time and not gain weight with time but br disregarded quickly…
Volume is a good indicator of real movement versus false movement in price, so I advise this as a more useful tool in conjunction with price levels.
[QUOTE=“lexys;712583”] I prefer to avoid all of them, because my trading’s profitable that way. Independent, academic studies have reliably and consistently shown that the various methods of constructing “pivot points” are no more collectively/statistically reliable than randomly drawn lines. To show that Fibonacci (for example) works, you’d need to do a statistically significant trial comparing and calculating the proportion of occasions on which it outperforms/underperforms randomly-drawn lines. That’s actually been done, many times, but never with the outcome the Fibonacci-enthusiasts expect and want. “Randomly drawn line theory” can be demonstrated to work really successfully, too. But only skepchicks like me want to read about that. Many traders look at indicators as “holy grails”, assigning properties to them they don’t objectively possess. The world is full of anecdotal “evidence”, and trading books/courses/videos are more full of them than most other parts of the world.[/QUOTE]
randomly drawn lines are the best… but i do see prices reversing at the pivots using Fibonacci calculations; as far as the classical pivot point calculations, they aren’t accurate at predicting turning points (the Fibonacci calculations do make a good indicator of price reversals, much better than say, macd or rsi, both of which notoriously lag price; the derivative indicators are designed so you lose money. I go with price action all the way, add a little bit of lucky charms, and i think you can pretty much beat the market. don’t read any books on trading (books on trading are like day time tv for the unemployed; sure it’s on and there’s really nothing else to watch, but it’s not even entertaining), because most likely it’s strategies that don’t actually work at all; books on trading are horrible. the authors couldn’t make money trading so they wrote nonsense books on based on their years of not making money like they wanted so they can retire early. good for the absolute beginners, but bad if you want to make money in the market, so you can retire early.
[QUOTE=“PipMeHappy;712617”] Applause… Wasn’t gitpip deriding the notion of traders making slow but consistent returns on another thread? Well, by his own admission, trading for big profits leads to bust account. The words “We told you so” spring to mind…Hopefully he will have learnt from this and eaten some humble pie… I agree, Lexy, that lines on a chart mean very little per se… I use round-number levels only, to keep things simple, and although there is no doubting that some price levels in any pair have more historical weight (like the 0.70 in EUR/GBP or the 7,000 in the FTSE100) there are many smaller, more temporary levels that may exist for only a short space of time and not gain weight with time but br disregarded quickly… Volume is a good indicator of real movement versus false movement in price, so I advise this as a more useful tool in conjunction with price levels.[/QUOTE]
If you have some humble pie for me, I’m going to eat it, because I like pie. I mean if your are consistently making money, why are you not a millionaire by the end of a year of trading? So, when you talk about the slow, consistent trader who makes $100 on his account every year, he has got to be crazy, because if he was that consistent, he would increase his leverage and put more money in his account. Unless, he sucks at trading and can’t risk losing that kind of money and that $100 was just a lucky trade that put him over on Dec 31, and lost it the next month.
LOL…it is funny you say that, reminds me a bit of all those automated trading systems that work for some time. But to be fair, there are some good books out there that can be helpful (part of the chapters) not to mention, the main TA books that are part of the syllabus for the CMT program Magee, Murphy and Pring are truly informative and useful for newbies in the TA world. I do agree that trading is something else, and books are not enough.
If you really want to make money, you should trade equities and stocks… See the 4,000-pip move in twelve weeks on GBP/NZD? Crazy… For a stock, that is normal… You would be better off leaving Forex …how many Forex millionaires can anybody name?
i like Fibonacci, Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century.
i think Fibonacci is a pretty good indicator, of course adding and merging other with it
[QUOTE=“oceanmen;712698”] LOL…it is funny you say that, reminds me a bit of all those automated trading systems that work for some time. [/QUOTE]
If it’s a free trading system or one that is being marketed, 99% sure it does not work.
How do u do it