Pivots support resistance myths | Forex Factory

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Pivots support resistance myths

  • #1
  • First Post: Apr 9, 2020 10:09am Apr 9, 2020 10:09am
I've gone through this thread https://www.forexfactory.com/showthr...8764&page=1821 and my suspicion has been confirmed. That pivots and support and resistance are subjective imaginary lines created by the market makers to know peoples positions and blow accounts overnight. Check the posts on the referenced thread from date 8/April/2020 to 9//April/2020. The pairs that were thrown about as people took positions were AU, AN and AC with the system confirming rejection for two hours. Today April 9 its been a major long candle on against a resistance level. No stop loss would repair that. The injuries, jeez. Anything in the market or forums will blow your account. Learn from experience. Observe charts.
  • #2
  • Apr 9, 2020 10:28am Apr 9, 2020 10:28am
I have no issue with support and resistance but using it alone without other confirmation is overconfidence.
  • #3
  • Apr 9, 2020 11:00am Apr 9, 2020 11:00am
Would you trade support or resistance blindly? Wouldn't there be specific rules to apply?

KP
Do your homework, follow the footprints of smart money
  • #4
  • Apr 9, 2020 11:08am Apr 9, 2020 11:08am
Quoting klopp433
I've gone through this thread
Quoting klopp433
https://www.forexfactory.com/showthr...8764&page=1821 and my suspicion has been confirmed. That pivots and support and resistance are subjective imaginary lines created by the market makers to know peoples positions and blow accounts overnight. Check the posts on the referenced thread from date 8/April/2020 to 9//April/2020. The pairs that were thrown about as people took positions...



Pivots are based on a sound algorithm, and it even exists before retail brokers armed with a market maker business model.
I'm using Pivots for additional reference or confluence or just part of my overall technical analysis. Hence, it boils down on how each of us is using Pivots.
However, based on my knowledge/skills, in almost five years (still a baby), or at the time in which I now write, this is what I learned so far... “While no methodology works in every instance, I have never seen anything so consistent”

Attached Image (click to enlarge)
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Anyway, you may need more information about using Pivots in Forex Trading >>> here
Since Frank Sinatra sings in his own way, my chart sing... I did it, my way
  • #5
  • Apr 12, 2020 2:45pm Apr 12, 2020 2:45pm
Quoting v2vboni
{quote}{quote} Pivots are based on a sound algorithm, and it even exists before retail brokers armed with a market maker business model. I'm using Pivots for additional reference or confluence or just part of my overall technical analysis. Hence, it boils down on how each of us is using Pivots. However, based on my knowledge/skills, in almost five years (still a baby), or at the time in which I now write, this is what I learned so far... “While no methodology works in every instance, I have never seen anything so consistent” {image} Anyway, you...
There's some truth with regards to consistency as the limits are basically about demand and supply thresholds. I also agree usage is a big factor. However it seems to have a bias towards swing trading.
  • #6
  • Apr 12, 2020 2:48pm Apr 12, 2020 2:48pm
Quoting KeenPips
Would you trade support or resistance blindly? Wouldn't there be specific rules to apply? KP
All sound systems have rules, but if the system itself isn't efficient then makes the rules useless.
  • #7
  • Apr 12, 2020 3:01pm Apr 12, 2020 3:01pm
How would you know a system doesn't work for you until you have put it to test or if you have an already functional one you are using then you will be unqualified to dismiss a system under consideration? At any rate, you are widening the topic, moving away from the point at issue.

Trade safe.

KP

Quoting klopp433
{quote} All sound systems have rules, but if the system itself isn't efficient then makes the rules useless.
Do your homework, follow the footprints of smart money
  • #8
  • Apr 12, 2020 3:30pm Apr 12, 2020 3:30pm
As a pivot trader for many years with no special courses and many years of observation. Too much emphasis is placed on trading off support/ resistances. Pivots are crucial in determining future price. If a daily pivot moves up from yesterday it means that price is in an up trajectory. It is not subjective, it is based on price. In an uptrend price will barely make it to support and on some occasions to the pivot and vice versa in a downtrend. Pivots are probably the most reliable indicator in anyone's arsenal.

Cheers
Trade to trade another day
  • #9
  • Apr 12, 2020 5:19pm Apr 12, 2020 5:19pm
Quoting Wavegarrick
As a pivot trader for many years with no special courses and many years of observation. Too much emphasis is placed on trading off support/ resistances. Pivots are crucial in determining future price. If a daily pivot moves up from yesterday it means that price is in an up trajectory. It is not subjective, it is based on price. In an uptrend price will barely make it to support and on some occasions to the pivot and vice versa in a downtrend. Pivots are probably the most reliable indicator in anyone's arsenal. Cheers
Yes, pivot point is very powerful and straight forward. I can`t do without it.
  • #10
  • Apr 12, 2020 5:28pm Apr 12, 2020 5:28pm
You can always use pivot points creatively even all by itself.
For instance, if
i) Price is moving below monthly pivot point

ii) Price is moving below weekly pivot point

iii) Price is moving above daily pivot,

Won`t it be logical to sell whenever price breaks R1 or R2 or R3 turned supports?

I think an understanding of price movement will make any tools work more efficiently.
  • #11
  • Apr 12, 2020 9:49pm Apr 12, 2020 9:49pm
price will almost always cross the average weekly pivot point, that in itself is an edge, anyone that looks back through some charts will easily observe this,
life is a reflection of what we allow ourselves to see
  • #12
  • Last Post: Apr 13, 2020 5:01am Apr 13, 2020 5:01am
Didn't the master of pivot trading - Davit blow his account more then once?
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