In addition to our standard technical analysis we can also compare the daily pivot to the weekly pivot with this one additional component that may add to our directional bias for the pair in which we are interested in analyzing and perhaps trading.
Some may like to use the fibs for potential support and resistance areas, however I prefer to use actual price turns to find potential "pivots."
So we have 2 types of pivot, those based on mathematical formulae and hard price action pivots where price turned and formed a "pivot."
However, in terms of the daily and the weekly pivots, those are often watched by traders and placed on the chart as a line. There are web sites that have those types of pivots already calculated for us on a list.
Feel free to post your TA and pivot analysis here and let's speculate on their accuracy. Enjoy.
Added Jul 11:
One theory suggests that the directional bias for the day may be determined visually using the daily pivot. This is rather simple, but I'll add it here since it may be one additional piece of usable information. If price is currently above daily pivot, bullish and bearish if price is currently below daily pivot. I don't trade this way, I use price action, but with the success of other "pivot systems" it makes sense to include it.
However, the above implication may be improved if we see, for example, that the daily pivot is above price and price is trending down towards the weekly pivot, then it would seem to be significant in our analysis of directional speculation.
Some may like to use the fibs for potential support and resistance areas, however I prefer to use actual price turns to find potential "pivots."
So we have 2 types of pivot, those based on mathematical formulae and hard price action pivots where price turned and formed a "pivot."
However, in terms of the daily and the weekly pivots, those are often watched by traders and placed on the chart as a line. There are web sites that have those types of pivots already calculated for us on a list.
Feel free to post your TA and pivot analysis here and let's speculate on their accuracy. Enjoy.
Added Jul 11:
One theory suggests that the directional bias for the day may be determined visually using the daily pivot. This is rather simple, but I'll add it here since it may be one additional piece of usable information. If price is currently above daily pivot, bullish and bearish if price is currently below daily pivot. I don't trade this way, I use price action, but with the success of other "pivot systems" it makes sense to include it.
However, the above implication may be improved if we see, for example, that the daily pivot is above price and price is trending down towards the weekly pivot, then it would seem to be significant in our analysis of directional speculation.
big money makes big moves and then hides during small money chasing.
