Hi All
A question about pivot points. What sort of time frame is best to use to calculate the pivot points
I have been using pivot points based on the last week for an indicater on where to put stop losses and also to see where a good exit spot would be. I am putting trades on using the best and worst performers and so the trades can last from 15 minutes (got stung yesterday on GBP/USD and then after stopping me out it turned around and headed back the way it should have in the first place) up to ??? a month 2 months ??? dont know as I have only had my demo account up and running for 3 weeks. Any thoughts on this one.
as an aside I started my demo account with $5000, lost the first 6-7 trades and was down to $4930, but have since clawed my way back to $5023 so pretty pleased with how its going so far after only 20 days.
Cheers
Rodney
The current time period’s PP is classically the average of the prior period’s High, Low and Close.
As you’re interested in refining pivot points, then I assume you’ve already incorporated the “simpler” support/resistance levels into your strategy.
So, presumably you’ve got intra-day s/r levels, plus the (more significant) daily and weekly s/r levels, MA dynamic s/r, round number s/r levels, trend lines, trend channel boundaries, plus maybe Fibonacci retracement s/r levels? This list isn’t comprehensive but its already sounding like a pretty complex approach to the chart.
A good rule to follow is that every feature you put on a chart or consider when making a trade has to earn its place -
- you absolutely must have it to trade profitably
- it must tell you something that price and existing indicators do not.
Are you absolutely sure PP’s are going to help significantly?
As a newbie I am trying to find what works and what doesnt (for me) What i find interesting with the PP is the ones I have done have lined up pretty well with resistance and/or support lines on the chart. The other thing I like about PP is that it is not reliant on your interpretation of where lines should go as you punch in the numbers and the results show you where the lines go. The only thinking you need to do is knowing what time frame to use.
Cheers
Rodney
Im recommended weekly pivot
I think, it’s the D1. Because, I get good result on S/R levels with that time frame.
Hi Thanks guys
I will need to play with it and see what is best for me.
I dont plan on using real money for a while so I can play with the demo account and see what happens
Cheers
Rodney
