Hi there. Its my first post here and im here to seek help regarding pivot points.
Im currently demo trading on Oanda’s platform on a 15mins time frame. There is an option for me to add PP and after i select that, im asked to click on a candle to set the points.
I know that PP can be used for any time frame. But the question is, do I select PP to be based on the previous closed candle (15mins frame), or the current candle (15mins frame)? Or would the correct way be to change the chart to daily, then select the previous day’s candle (?) or the current day’s candle (?), and finally switching back to the 15mins time frame?
Would appreciate any advice here. Thanks in advance.
I am not familiar with Oanda’s trading platform. All I can tell you is that ‘standard’ Pivot Point or Pivot Level calculations are based on the high, the low, and the close of the PREVIOUS DAY (in your case PREVIOUS BAR). In other words: Pivot Points or Pivot Levels are always calculated for the NEXT DAY (NEXT BAR in your case). My opinion: proceed as you have noted i.e. use the DAILY chart for the calculations and then move to a lower timeframe if you wish (although, as you say, they are SUPPOSED to work on any timeframe but I myself am not so convinced i.e. as with any trading system or trading methodology: the shorter the timeframe the more unreliable the signals).
Hi:
I’m a newbie too. But from what my research shows me so far, pivot points combined with candle sticks is where it’s at. There are some great videos about PP on Youtube. They will lead you to other resources, like articles explaining their use in detail. Forex Training Videos & Course and Pivot Point Trading Tutorial are but two of the very informative and free sites out there. Good luck.