ripley I was being facetious in my answer. But indeed later i will take the time and give a quick synopsis of how i use pivot points. Myself i find there usefulness as a valuable tool with my trading the ES on a 5 minute chart. My two friends (HA) bitstream and maverick like to attempt to disease my use of TA as hogwash. I surely rub some people the wrong way at times but the true intention is to be of help to some traders. Some people like to criticize and belittle others without actually contributing much else. Traders in general would do themselves and others good by looking in the mirror once or twice and think about being harder on themselves first. I myself can say i have "been there , done that", it is useful especially when trying to look into ones own mind and look for self improvement. Persons that know me in real life know where i am coming from when i make a smart ass remark etc. simple words like "OK, get serious" will get past any jovial response in a flash. Bitstream and to a much lessor extent mav have not tried that yet. If bitstream thinks i am in a contest with him he is sadly mistaken because there are better things to spend time on. i look at his ramblings as jealously and that is a shame because in the chat room i see his posts about trading and in my mind they have no rhyme or reason, more like throwing darts. So enough about him and as stated, later i will give a decent response to your question. it is a wise man/women that asks questions and attempts to help ones self rather than just be a pain in the ass . thank You. Later. PS, took a quick look at other responses and WHISTLER is in the ballpark. pivot points indeed work best from a pit trading point of view. Pit locals especially in SP, NQ are still using pivot points today. They in general use these levels in between the pp's as where the price is possibly going to travel until price hits the next support/ resist level. Makes sense, and THEY WORK more times than not. Nothing is a sure thing in a game of probability. moer to follow tomorrow. Be safe out there. later (building a new pc, two chip operton job, never did a 2 chip buils before, it is fun putting them together, this pc is going to be my order entry and charts pc combined). The old ones will serve as backups.
what a duplicitous liar u are; u have nothin' to speak of...u never made a decent call in da chat and talk so much rubbish u give us a headache every single day...im not in a contest with u 'cause even a blind monkey can beat u fair and square, besides i dont trade futs regularly, my game is stocks; its u da so called master of emini that rambles about u 5handles a day....and unfortunately for u i post me entry and exit on many of me trades, u never do that. and u got very little to contribute other than givin' away pivots after da fact or talkin' about obvious supp and res point...my my, fellas i invite u to come into da chat whenever u wish and see for uself....
Hey Hoggy, I have a question for you. Since you appear to help so many on ET and infer that all I do is criticize, then riddle me this batman, why is it on this thread linked below, where ET members listed the members that have helped them the most in their trading, my name was listed 12 times. Your name was not mentioned once. Maverick 12 Hog 0 http://www.elitetrader.com/vb/showt...o have you learned the most from&pagenumber=1 Surely you can answer me this. Not one person on ET thought highly enough of you to mention your name? There must be some mistake.
I seem to conclude that pivot points are in the same category as fibonacci: usually useless. Of course, everything does occasionally work.
That point about asian futures is something i have noticed too. hmm... specifically the nikkei now, the nikkei is NOT pit traded, which makes it ever weirder it's also differently weighted price vs. capitalization weighted should make a difference in the "feel" of an index i have never tried using floor trader pivots for stocks. so, i cannot say how well they work. since I (rarely) intraday scalp stocks, i don't really care about pivots. i definitely know they have utility for index trading, and especially some indexes more than others. combining pivots with market profile, a firm grasp of market internals, and some decent entry techniques is a winning strategy - at least for me.
I plot the daily Pivot Range, the calculations for which are outlined in The Logical Trader. I can probably count on one hand the number of days that a stock was down that didn't test or close below the dialy pivot range or up when it didnt test or close above it. Pivot POINTS, I feel, are useless because what are you supposed to do, get short below and long above it? Seems to require too much perfection and no slippage. A pivot range, I find, allows me to execute in the direction that I feel the market is heading and to use the opposite side of the range as my stop. Tangentially, when the pivot range widens, it's a good indicator of an inside day and vice versa when it's abnormally tight.
"Pivot POINTS, I feel, are useless because what are you supposed to do, get short below and long above it? Seems to require too much perfection and no slippage. A pivot range, I find, allows me to execute in the direction that I feel the market is heading and to use the opposite side of the range as my stop" that's overly simplistic pivot points are key reference areas it's not quite the same thing .