I am looking into pivot point, to decide if they can imporove my current strategy.
I mainly trade on 4h charts, using support and resistance, trend line as main indicators.
Before I start searching the web, I would like to know what to search for,
I read that there are daily pivots, weekly pivots, that they are dependent on where your broker is located…
Like I said I trade on 4h chart and my trades are staying open between 2 days to 2 weeks, my broker is in UK.
Can you advise me what I should be searching online for? Is there a naming convention to match my criteria? Does someone have something that is willing to share… if legal?
Some “classic” recommendations about using pivot points can be found in “technical analysis bible” written by J. Murphy. Regarding advanced applications of pivot points I can suggest you to add your own improvements rather than copying experience of others, because after all your unique trading edge is what generates profit for you.
Thanks for the info, really appreciate it.
I was able to find some nice classic pivots to download.
My intention is not to copy a strategy, in fact, I do not want to read about other people strategy, simply because I have my own strategy which works for me and for the type of trader that I am.
I always try to refine my strategy as I continue to learn, I believe that one of the problems that I still try to tackle is that I struggle to make the best out of a trade, I make a profit, but I feel I get out too quick sometimes, my strategy relies on support and resistance, but either I am bad a drawing them or I am just unlucky that they always get broken. My last 4 trades that I closed in profit each one went at least another 50 pips.
This brings me to today’s point about the pivots, I want to study and monitor them to see if they can provide me with better support and resistance than the one I draw.
An example, yesterday I shorted USD cad, I closed it today with 141 pips profit, it is still going down an extra 86 pips so far. In my defense, it had reached my support which matches with S2, now looks like is bouncing of S3.
By the way and some things I meant to comment on when this thread first appeared:
Time zones do not matter with pivots. They will be relative on the daily charts. In other words: the actual values of the pivots may differ in different time zones but the pivot levels themselves will be respected.
Another thing to be careful of are brokers (in particular MT4 brokers) that give you a Sunday bar which will usually represent only an hour or two’s worth of the underlying futures trading. The pivots for Monday will therefore be incorrect as they are based on the Sunday bar and not on the previous Friday’s prices as should be the case.
