Are pivots useful ? a statistical response

Discussion in 'Trading' started by fortuna, Oct 5, 2003.

  1. fortuna


    Since August 1999, one of the supports & resistances calculated by the Pivot method (I get 5 figures: s2,s1, pivot, r1,r2), have matched @ 0.10% in absolute term FROM THE low or high of the day for 19.8% of these datas.

    This has been done on CAC40 datas

    For SPX datas, statistics is up to36.3%

    fOR ndx DATAS, WE HAVE 19.4%

  2. That is very interesting. I wonder why this is the first time I have seen this come up. Appreciate the input.
  3. Am I the only one who does not understand the original post?
  4. I'm unsure what is meant by the term "absolute" in the context of this thread. And using the numbers on an index is nowhere near the same as using the numbers on an index future.

    Most importantly, as with most if not all means of determining intraday levels of support and resistance, the numbers are to be used as guidelines from which to trade, not rules. That said, all one needs to do is watch trading activity as price approaches one of these numbers to realize that the numbers definitely play a role.

    Provided by, the above explanation excellently describes the role the numbers play. The bottom line is, understanding the role the numbers play intraday will help your intraday profitability.
  5. I just find it interesting that there hasnt been extensive backtesting of these numbers come up here as it seems it would be fairly easy to do. If somebody knows of any studies along this line please let us know. I have read lots of explanations of the influence of the numbers but have not found they helped me very much in trading. The pivots I find do help are previous swing hi/los, opening and closing price, etc.
  6. fortuna


    I consider the 5 resistance/supports figures calculated by pivot method to be a significative signals if they are around -/+ 0.10% of the low/high OF THE DAY.

    For instance , on the 1st october, pivot method gave a first resistance for the cac40 @ 3192.12 (r1). The high for the day was 3191.01, or less than 0.10% (ie 3.2 points) . This day is considered as a valid day.

    I find this study quite useful as on a daily basis, you now know that around 20% of the time, high and lows are respecting pivot numbers. That is an interestinbg result.
  7. fortuna


    Now I am checking with intraday data for the last 3 months what is the impact of pivot lines .

    Soon on a movie theater near you
  8. fortuna


  9. Are you sure you received the information about pivots from ? I could not find any such website, and I would like if you could give the proper website name.....they had a great explanation of the S/R levels IMO.


  10. I am familiar with pivot points, but are they applicable to FOREX. There aren't "floor traders" per se, and the market is 24 hours. Has anyone used pivot points with any success in FOREX.

    #10     Oct 5, 2003