Can somebody elaborate the difference between Pivot Points and S/R?
Pivot points are calculated using a formula. They can be used on any timeframe, but I think they work best on daily charts. They are calculated using the data from whatever chart you are using.
http://www.piptrader.com/forex_education/forex_technical_analysis/pivot_point.asp
That kind of explains how Pivot Points are calculated. Most charting softwares will do it for you automatically and if it doesn’t, you can find several free pivot point calculators on the web.
Support and resistance lines are areas where price has had a hard time getting through. The higher the time frame you go, the stronger the support or resistance. In my opinion, support and resistance areas are more reliable levels because they are used by more traders than pivot points.
I use support & resistance in my TA and charts but didnt quite understand the value of pivot points. Perhaps counter productive to be using both.
I think anything that’s pivotal for price. We can also think this way that Support and Resistance are pivot points.
It’s any pivotal level for price where the price can breakout or make a turn.
i agree with topchess
fib levels, pivot points, support resistance (high/lows), moving averages, maybe even Parabolic Sars… these are all important levels but trying to graph them all and trade buy them can definately be counter productive. if you are a news trader or day trader then Pivot points might be something worth watching since the change daily.
i am a swing trader to i use moving averages, support/resistant levels and fib levels to locate my pivital areas.
you probably wont see the value in trading PPs unless you trade daily charts. download VTtrader platform (it free). they have pivot points. see what they look like on a 15min chart and a 1 hour chart. you will notice what the price some times bounces of these levels during ranging and even volatile market movements.
I am using VTtrader but I dont like their pivot indicator makes your price chart messy when you attach it so I’m sticking with S/R for now.
lol, i remember in another thread that you mention that you used VT.lol sorry. anyways, if you find drawing in your own S/R levels then stick with it. do you use any other S/R indicators to verify? and do you trade the 15h and 1H charts?
I just use std S/R indicator and trade using the daily and 1H charts because of my job. Elang has a great system posted here on this site I am incorporating his ideas.
I use a similiar version of Elangs system only with ADX instead of MACD. I rather plot quick FIBO lines from the swing high/low which most charting software supports, than manually calculating Pivot Points and adding them to my charts. I haven’t found PP’s on Oanda which is another reason I don’t use them 
topgun, what advantages have you seen using adx instead of macd? do you confirm on d-/d+ crossing?
I just always used them both together because I like to look for regular or hidden divergences like on the blogs. I also use the DI+/DI- crosses to signal a possible trend reversal and lastly if ADX is 20+ (and heading up) it signals a trend if present, if its 40+(and heading up) a strong trend is present and it shows on some of those big moves like the GBP/USD 200+ pipper yesterday . I haven’t really used MACD histogram much so I can’t really compair the two. I just like all the uses that ADX combines into one indicator, plus it’s more colorful (RED/GREEN) DI lines that is. I guess it’s just personal preferance which is what makes FX so awesome!!
I love ADX too, and I use it mainly for my trade to confirm trends. MACD is not good for anything other than divergence really.
The ADX line is very helpful as topgun explained.
Great!
I am not familiar with ADX but I’ll add it to my chart and study it. I use MACD momentum to confirm my signal. I understand the 20 & 40. Is there a way to measure momentum using ADX?
Great link on what it is and how to use ADX
http://www.incrediblecharts.com/technical/directional_movement.htm
I have been following Elangs system and was using MACD. After reading this thread though, I studied your link you posted later on and read Elders system with using this indicator. I set my periods on the ADX to 10 to go with my (Elangs system) and back tested it. I was getting earlier readings of exits and reversals with higher profit taking than I was with the 5, 10 EMA crossover. I back tested it a little more and was very profitable with just using the ADX, and no other indicators. I am going to use ADX in place of MACD to confirm trends and still use the 5, 10 EMA and RSI break to exit because ADX causes you to constantly be entering and exiting. I was just wanting to know what you set your ADX too as in terms of periods because I read on your site you linked that the periods for ADX is not the same as EMA periods. Thank you for your time and any advice would be much appreciated.
ahefner33
Welcome aboard the ADX bandwagon . I just wanted to clear up that the link I gave is not my site, I just love how that site gives really good info & examples of ALL the indicators I ever wanted to know about, including Alexander Elders home brewed ones. When a site is good I have no problem recommending it. To answer your question, I have always used the default of 14 for my ADX settings.
Please can somebody show me how to plot S/R ?
Do I need to click some button before it will show?
Please somebody should help me. I am not ashamed to ask.
Thanks in advance.