Do Pivot Points really work? | Forex Factory

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Do Pivot Points really work?

  • #1
  • First Post: Oct 30, 2015 3:02am Oct 30, 2015 3:02am
Good Morning, I have began to incorporate Pivot points into my daily trading, I was wondering how important they actually are and how far back do they effect PA ? By that I mean, do you become aware and use the previous days pivots points, or the day before that? If so, are pivot points simply support and resistance lines that can be drawn on your charts at significant points anyway? Or do daily pivot points serve a different purpose?

If I were to draw on even that last 3 or 4 days daily pivot points, including the present day, that would leave very little trading room in between?

Regards
  • #2
  • Oct 30, 2015 10:06am Oct 30, 2015 10:06am
I've never seen anything other than cherry-picked or anecdotal evidence that pivot points work at all (and certainly the few independent, academic studies I've seen on the subject haven't disclosed any). Even randomly drawn lines can be made to look very impressive, by selecting the charts appropriately to "illustrate" whatever's being alleged.
  • #3
  • Oct 30, 2015 10:09am Oct 30, 2015 10:09am
Quoting CNTrader1
Good Morning, I have began to incorporate Pivot points into my daily trading, I was wondering how important they actually are and how far back do they effect PA ? By that I mean, do you become aware and use the previous days pivots points, or the day before that? If so, are pivot points simply support and resistance lines that can be drawn on your charts at significant points anyway? Or do daily pivot points serve a different purpose? If I were to draw on even that last 3 or 4 days daily pivot points, including the present day, that would leave...
they do, sometimes; they same with the coin flip strategy.
As Above, So Below
  • #4
  • Oct 30, 2015 10:09am Oct 30, 2015 10:09am
Quoting Xela
I've never seen anything other than cherry-picked or anecdotal evidence that pivot points work at all (and certainly the few independent, academic studies I've seen on the subject haven't disclosed any). Even randomly drawn lines can be made to look very impressive, by selecting the charts appropriately to "illustrate" whatever's being alleged.
Perhaps even randomly drawn lines can work.
  • #5
  • Oct 30, 2015 10:14am Oct 30, 2015 10:14am
Do Pivot Points really work?

Yes.
  • #6
  • Oct 30, 2015 10:34am Oct 30, 2015 10:34am
Thank you guys for your imput, so far in favour of a big no then.

Loureed10, I take it these are something you use in your daily trading? If so how far back are they significant do you find?

Im unsure whether the PA returns/hesitates at these points due to the fact its a 'pivot point' or simply a form of support/resistance?

How do you find them Loureed10?
  • #7
  • Oct 30, 2015 10:40am Oct 30, 2015 10:40am
Quoting CNTrader1
Thank you guys for your imput, so far in favour of a big no then.
I wasn't being sarcastic.

Randomly drawn lines can also work.
  • #8
  • Oct 30, 2015 10:47am Oct 30, 2015 10:47am
Testing this, testing that, backtesting this, backtesting that, during months, during years before incorporating them to my trading, just like everybody.

Anyway, it doesnt matter my opinion or somebody elses opinion, your WORK its to test this and test that and incorporate to your trading what is useful to YOU.

Different traders, different systems.


Good luck.
  • #9
  • Oct 30, 2015 10:50am Oct 30, 2015 10:50am
If i will do more money using "Randomly drawn lines" i will use it for sure.

Good luck to all.
  • #10
  • Oct 30, 2015 11:10am Oct 30, 2015 11:10am
Quoting CNTrader1
Good Morning, I have began to incorporate Pivot points into my daily trading, I was wondering how important they actually are and how far back do they effect PA ? By that I mean, do you become aware and use the previous days pivots points, or the day before that? If so, are pivot points simply support and resistance lines that can be drawn on your charts at significant points anyway? Or do daily pivot points serve a different purpose? If I were to draw on even that last 3 or 4 days daily pivot points, including the present day, that would leave...
Of course that pivot points work but not in the way most people use them. You have to check your definition of pivot point! Pivot points does not give trading signals.....or direction. They are used for reference of how far and how fast the price is moving.
I give you 3 analogies for examples:
1 You are in Airplane, 10 000 meters above ground flying with 700 km/h
2 You are in bus on a wide smooth highway and moving with 120 km/h
3 You are in car on very narrow street traveling with 100 km/h
Where you you feel the speed the most? It is obvious that in number 3.
100 km/h in the car feels much faster than 700 km/h in the airplane. But why? Because of PIVOT POINTS!
Now back to trading.
If you watch just the price(no chart) you don't have good sence of movement, speed and distance. But you open a chart and instantly the feel is much stronger.
You draw a fixed horizontal line and the feel for the price action is even better.....Why? Because you have pivot points.(referance points) You get the idea??
Pivot point is also the reason why when you have open postion, and you watch your P/L you get much better feel for the price action and every tick feels stronger and bigger. Because your break even price acts as pivot point!
  • #11
  • Last Post: Oct 30, 2015 11:17am Oct 30, 2015 11:17am
Today. Right now. 15 M Chart.
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