Hello,
I have a few questions on pivot points... I've found some things on the net, but it is never as in depth as I like it.
I understand that a pivot point is one of 7 lines; 3 resistance lines, 3 supports lines, and a center pivot point.
Now...
first up, what are the differences between these lines? Do they simply mean, there are 3 possible resistances, and supports, and the price can go from R3 to S1 to S3 to R1? Or does it mean, the chances are less likely of the price hitting R3 or S3? And more likely to hit the lower R and S lines.
What is the significance of the Pivot line? Is it just another line to help gauge where price might go?
Finally, I have heard of setting up a daily and weekly pivot point in order to help look for congruence with each other, the trend, and fib retraces.
How would i do this??? I have a Pivot Calculator, but lets say that today is Sunday (and it is), and I want to setup a weekly and daily Pivot. Does that mean I look at the last daily, and the last weekly bar, and then use their respective values to make the pivot lines? This in effect will give me 14 lines... 7 of which I can refer to for the entire week, and 7 of which I can refer to for today (Sunday). When Monday rolls around, I then make a new daily pivot off of Sunday bar values.
Is this correct?
I have a few questions on pivot points... I've found some things on the net, but it is never as in depth as I like it.
I understand that a pivot point is one of 7 lines; 3 resistance lines, 3 supports lines, and a center pivot point.
Now...
first up, what are the differences between these lines? Do they simply mean, there are 3 possible resistances, and supports, and the price can go from R3 to S1 to S3 to R1? Or does it mean, the chances are less likely of the price hitting R3 or S3? And more likely to hit the lower R and S lines.
What is the significance of the Pivot line? Is it just another line to help gauge where price might go?
Finally, I have heard of setting up a daily and weekly pivot point in order to help look for congruence with each other, the trend, and fib retraces.
How would i do this??? I have a Pivot Calculator, but lets say that today is Sunday (and it is), and I want to setup a weekly and daily Pivot. Does that mean I look at the last daily, and the last weekly bar, and then use their respective values to make the pivot lines? This in effect will give me 14 lines... 7 of which I can refer to for the entire week, and 7 of which I can refer to for today (Sunday). When Monday rolls around, I then make a new daily pivot off of Sunday bar values.
Is this correct?
"Please sir, may I have some more pips?"
