Hi, im new in this business and i would like to get some opnions if the pivot points really work for stocks. Is there a lot of you that use that to find entry and exits points? Does it work only for intraday movements? Any comment will help! Thanks!
THEY are a tool....don`t fall in love with your products or tools....but you still need to put all the pieces together....if something news related affects the economic outlook...your pivot plays will get crushed.....but they are solid technical analysis tools ....all else being equal ....or held constant, fundamentally speaking.
I posted the same question several weeks ago. Since then, I've experimented with them and decided to keep them on my chart. Reason: they do seem to act as support/resistance, although they only come into play when prices are near the pivot range. I've seen prices bounce off of the pivot range and trade in a range back and forth around the pivot range. I think if you want to do longer term trades you would need to look at weekly or monthly pivots. Read The Logical Trader for a complete discussion. HTH. Chuck
Thank you for you comment and the book indication, bluedemon77! I read your thread and that helped a lot. What i really wanted to know was if its reliable for stocks as much as it is for futures, but i guess i just have to test it myself...
I only trade stocks, myself. If you subscribe to Active Trader, the current issue contains a critique of pivot points. Chuck