Does anyone here use pivot points? I use them with stocks and they work great but I was wonder how to apply them to forex. Which closing price would be best, New York?
I have used them in the past. NY close is really
the optimum time, but I have also used my platform
close as well.
I would say which ever one you use stick to that.
I have not been a big pivot user but am planning on doing some testing how they work out in the EUR - will keep you posted : )
Question…when you use fibonocci, gann etc…aren’t U using pivot points…??
I mean there basically the same right?? If I look for the retracement at say 38, 50, 62% isn’t that going to be the pivot point???
J.
I was thinking of levels derived from a formula such as:
Pivot = (High + Low + Close) / 3
Resistance 1 = (2 x Pivot) - Low
Resistance 2 = Pivot + (High - Low)
Resistance 3 = High + 2 x (Pivot - Low)
Support 1 = (2 x Pivot) - High
Support 2 = Pivot - (High - Low)
Support 3 = Low - 2 x (High - Pivot)
Which do not necessarily coincide with Fib levels etc…
From what I understand, todays pivot points are based on yesterday’s high & low…correct?
And MT4 doesn’t seem to come with pp indicator 
so I had to get one somewhere else…there are quite a few to choose from :eek: some fancy and not so fancy!
All pivot points are calculated from the high, low & close
from the previous price action. Timescales are dependant
upon the users preference, ie daily, 4H, 1H, any lower than
this the results are inconclusive.
As far as MT4 is concerned the old adage KISS comes to
mind. I in fact set-up an excel spreadsheet & plugged the
data into that, then transfered the resulting pivot, S1, R1 etc.
to my charts.
I always feel an underlying appreciation of the basic calculations
helps, even if in the end you use a stand alone EA.
Question…when you use fibonocci, gann etc…aren’t U using pivot points…??
I mean there basically the same right?? If I look for the retracement at say 38, 50, 62% isn’t that going to be the pivot point???
Fibonacci & pivot points in this context are not the same calculation,
one works on buying pressure, calculated on the high/low of a given
trend, the other as can be seen from above is calculated on the previous
day/bar.
The 38%, 50% etc. are more commonly known as swing or reversal points,
but they do act the same way as support/resistance lines.
But “a rose by any other name…”
Fibs and pivots are [I]not[/I] the same thing, however when these levels [I]line up[/I], that particular support/resistance level is that much more powerful. If I’m in a trade and I see a pivot and a Fib line up in close proximity, I will most likely set my target there.
Institutional traders watch pivots and Fibs closely, and institutional traders are who move the markets - so I’d highly recommend adding them to your trading toolbox as well.
Sorry folks… had much more info here for you, including links to free pivot and Fib tools for MT4 you could download, but the powers that be care more about promoting their [I]own[/I] products than in helping you. I (personally) don’t believe I violated their spam rules, as I wasn’t promoting my site (everything on which is free anyway), but rather linking (directly) to some useful tools found on it. Oh well, I’m just a guest here, and must abide by the rules of our hosts.
Wish you good trading regardless,
[B]Black Knight[/B]
Hey…
take a look at this weekly chart pattern both the trend and support lines as well as a fib retracement from the newer high to the previous high…everything seems to meet right at the current price and again tells me were reaching some kind of a key pivot point???
anyone agree disagree am I nuts…well we all know the answer to that question but seriously folks??
(Thanks for the extras BK)
J.
