What software do you use to calculate your pivot points? Do you trade based off the pivot point calculations of the software?
Chas, I think any trader can make it work, or almost any strategy for that matter. Traders just have to pick a system, stick with it and refine it to suit their personality. TICKER
Well, so what's the methodology? "Buy support, sell resistance"? Maybe you could elaborate on it a little bit here. And what books you would recommend that describe S/R trading well?
I would like to know more as well, I find that very few people undertand how or why this works and nobody wants to explain it.
Like Ticker says, find something and make refinements that suit you. I like the old school pivots and don't use any "sophisticated" computerized analysis. I also keep an eye on the prior day's H,L,C.
Sunnyskies, The way I trade off support/resistance is the same for all my methods or most of them, is wait for confirmation. If say 1000 is support and price comes down and sits on it wait for either a higher low or a break of the high of the bar. Same with resistance only the other way. And don't forget support becomes resistance and vice versa. There was a good example last night in the emini SP. Look at a 5min chart. In the first hour price formed support at 985.75 it then retested about an hr later then came back and made a double top after lunch right on 985.75 support which is now resistance. Sold the break of the low in between the tops with a 1pt stop. The result is history. Hopw this helps Can't recommend any books, maybe someone else can Regards
You can find lots of info on pivots here www.simple-as-123.net Download free Pivot Calculator: http://www.simple-as-123.net/simple/PivotCalc1.exe Some Charts showing trades off of Pivots: http://www.simple-as-123.net/Es16.gif http://www.simple-as-123.net/Es17.gif
About 5 years ago I used a software called "Ensign". www.ensignsoftware.com/ It's an excellent program, but I switched to Supercharts for backtesting purposes. Anyway, ensign has a built in pivot point function. That was one of the first things I missed. If Ensign had backtesting capabilities (it might now) I'd probably rather have it than Supercharts.