Pivot point timing and weekend

Hi,

for anyone using pivot points:

1. Is GMT+0 the standard reference or does someone use EST? I did a visual backtest and it looks to me GMT is the better option.... I'm wondering not for retail brokers but since most volume are banks they should reference themselves on London...

2. How do you use pp for Sunday to Monday pass?... I currently have Sunday as an addon to Friday so on Monay it will calculate pp based on that whole range. I just assumed it is better not to filter those candles just because of possible loss of information....

The calculations of PP rely on using the previous day's data, the global trading day starts in Wellington NZ and ends in New York, so it's best to time pivots based on a 4pm NY close to the last 4pm NY close.

Any other time being used and being seen as useful is coincidental/whatever works for you/there isn't much data to distort the levels. Personally I've used a time of 10am Sydney, the gap between NY close and Sydney open contains little volume and tiny price movements so it's not a problem.

The pic below has PP calculations based on 3 different times (give or take an hour or two, it's an old pic) near NY close, GMT 00:00 and SYD open. You'll see that regardless of time used, there are always "hits and misses" and that the levels usually coincide with each other anyway. I added zigzag to make it a bit easier and the different PP are -solid lines, dashed lines and dotted lines.

I used to play around the different timings to find the one most 'accurate', but in the end i just stuck to the default timing on my platform. Now i just use pivot levels as 'zones', as with fibs and s&d levels

If you put a straight line anwhere on the chart you will get resistance in the long runn bcs. the market is ~60% rtm...not sure if this is the optimal, I would like to have it above 70% and go with the institutional flow

Another thing is, for intraday i would prefer to buy/sell only at daily S2/R2 minimum

Buy And Sell Logic
If a buy signal - the closing price of the candle, crossed the entry level under the old scheme, should be above the old entry level. Buy this immediately after closing. This candle does not have to be just the next one. As the figure. The main proof of closure above the old entrance.
If the sale - the closing price of the candle, crossed the level of the old entrance, must be lower than the old entry level. Sell ​​immediately after the closing of this!

Stop Loss And Take Profit
It uses 86 pip stop-loss, but doesn’t use any take-profit. The average winning trade is about 55 pips, the average losing trade is about 48 pips.

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