FX Pivots

Discussion in 'Technical Analysis' started by alex.samant, Nov 28, 2007.

  1. Hey y'all.

    This is a question that has been bothering me for some time now.

    In the FX, as you all know we have an Asian Session, an European/London Session and a NY Session.

    Now, pivots are pretty cool with the FX but the way you calculate them can make a difference.

    Most of the trading material out there indicates calculating the pivots based on the NY bank settlement price. The pivots are cool for the just starting out Asian markets, but are they still ok for the London session? The question is rational as there is a difference of about 8 hours between the start of the day in Asia and the London open.

    I am not asking if they are still valid S/R points, because they are, and price does react to them right to the next day's 5 PM EST.

    I am asking this because, if you, as an example, trade a break of the central pivot in the direction of the daily trend, that break may have already happened in asia, according to asian open calculated pivots.

    However, if you recalculate the pivots at midnight EST, your London Open will be much closer to a central pivot point therefore you get the setup much often.

    So basically, my question is: Do you have to recalculate the pivots for the session you are trading two hours prior to every session open? IT's one of the 24hour market challanges...
  2. Interesting question. I suppose the only thing to really do is try them all and determine which set of pivots seem to work the best. Probably doesn't make sense to use pivots that not many other traders are using.

    I've been using the pivots calculated off the 5pm eastern time. Prior to that I was using the midnight pivots but it seems the 5pm pivots are more reliable.

    Looking online I found that many sites say traders use the pivots from a 4pm est closing. I've got mine set for 5pm est...?
  3. speres


    the challenge is whether you can answer the question yourself
  4. How I can say your answer is not a good one! :D
  5. speres


    Thankyou oddtrader, lets hope it lands
  6. i have found my answer.

    i was hoping other people shared their opinions because that's what a forum's for...

    oh well
  7. We are also expecting you to share your answers because ... :)
  8. that is a matter of free will :)

    but the answer for me is "It doesn't matter"... really.
  9. the truth is that when you start reading the message of the market directly off price action and relying on no indicator of any kind the market no longer seems chaotic.

    actually it looks very rational and orderly.

    so, it doesn't matter whether you are at s1, r1, x5, g7 or abcd9...
  10. The truth is that's true. Looks like you've found the holy grail you want! :eek:
    #10     Feb 11, 2008