Pivots are the worst thing i came across - page 2
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After studying pivot points i started trading however in my trading research, it is the worst thing i came across because Its based on previous day hlc/3 information, but after deep study in technical analysis I found that market does not majorly move based on pivots but yes it follow up for sure but these levels are not sustainable for long term accuracy. But in contrary to that regardless for how many hours a market operates, I found its always followed up with better accuracy if a swing is studied. For example, A swing may keep building up for 3 days as you may have seen price of Gold rising continuously, in this case Pivot won't be useful as it will be giving only resistances which will also be broken upside and wont work for reversal trading and until a swing is completely built up, it wont give us further idea to study market. I welcome the feedback on what you think Pivot or Swing based method is useful for you?
A market can only follow pivot if it keep in ranges which is not possible, any chart will someday breakout huge either upside or downside and it becomes unstoppable, that day will wash out account balances of day traders who trade with huge leverage. But if you study swings, it works in both cases, if price is continuously rising or it is in range.
I have also tried Pivots, with a similar experience. I find Murrey math lines a lot better, especially on H4 and D1 charts.
Just look at today's EURAUD chart and see how the price jumps off from lines... Of course, although called "math", this does not refer to mathematical accuracy of trend change. However, once the price gets to a math line, it starts hesitating and smaller timeframes (for example, M5/M15) can reveal whether it would be backing off the line or will break through it. I can "safely" predict (not an advice to trade) that by the time the current candle is closed, the EUR would have moved up back towards the line. So, this could be a "relatively" safe entry for a very short-term buy (at least until the end of the current candle).
Update April 4th (morning). The below picture demonstrates what I meant yesterday. Price hesitated around the Murry Math line and jumped up from it. Right now it is hesitating at the next MM line. Now we need to monitor M5/M15 action to decide if pair will go UP again or will go down from this line. In any case, trading from one MM line to the next can be a viable strategy.
Another quick update. Pair reached another MM line and hesitating. Based on broken consolidation on lower timeframes (M5), expecting price to continue down to the lower H4 MM line.
Final update: price did not quite reach my expected level. It was stopped out by a smaller timeframe MM line. Below is the M15 chart with the M15 MM lines. This only comes to confirm that smaller timeframes (M5, M15) are very important to follow. They reveal so much... Also, observe, yet again, how strictly the price dances between the MM line levels... so exact...
Its because i have seen charts like GOLD which keeps rising for days without giving any pullback, They dont respect Previous daily candle's OHLC based pivot points, but they respect swing structure based concepts like elliot waves more, because in swings ABCDE AB and CD may have unlimited lengths, but in pivot you are sticked to watch price action on ranges which are derived from previous daily candle which is never a good idea for charts where continuation is huge, like 10x of previous daily candle and you cant ignore this, it happens on every chart. No chart sticks to consolidation ranges always where pivot seems to work well.
Hi! I think you should start with “Why is the price moving?” Is it moving because the price is trying to reach some ABCD ED points or some crabs or dragons or butterflies or whatever other animals you want to see in those candles? Or maybe another reason?! Just wondering …
lol Animals 😆I believe price moves when it reaches an ending point e.g. in Elliot waves 5 is end of wave, but in this picture you dont get about the length of 1-3 or 4-5 wave because they can be as long as possible. Its never necessary that they would be 1.618 extension, but in harmonics, its possible that they can have longest expansion e.g. 3.618 or more so manually its not possible to decode everything accurately but coding an indicator really helps me understand whats going on in chart. I have seen Pivots in H4 chart breaking up Its R5 resistance badly but when you follow up harmonics and elliot waves, you always have idea for whats going on much better than pivot. I believe if someone follow Pivot point they may not stick on same chart, If H4 Pivot fails they have to look for Daily or weekly pivot otherwise watching a single Timeframe will make all pivot traders clueless when big rally occurs to the market
I have learnt to make my trades more accurate by following up fibo time by Russian trader Victor where i follow that if price do not reach 300% of fibo time then it resets and we have to do new calculation from the area after 300% of fibo time expansion.
I also heard that price makes a structure of a triangle before making a rally. This structure is two rising highs in case of uptrend and two rising lows in case of downtrend.
Example 1. - For reversal trading at resistance this is necessary to be formed from bottom
2. I avoid "reversal trading: when i find any of these
After studying pivot points I started trading however in my trading research, it is the worst thing i came across because Its based on previous day hlc/3 information, but after deep study in technical analysis I found that market does not majorly move based on pivots but yes it follow up for sure but these levels are not sustainable for long term accuracy. But in contrary to that regardless for how many hours a market operates, I found its always followed up with better accuracy if a swing is studied. For example, A swing may keep building up for 3 days as you may have seen price of Gold rising continuously, in this case Pivot won't be useful as it will be giving only resistances which will also be broken upside and wont work for reversal trading and until a swing is completely built up, it wont give us further idea to study market. I welcome the feedback on what you think Pivot or Swing based method is useful for you?
A market can only follow pivot if it keep in ranges which is not possible, any chart will someday breakout huge either upside or downside and it becomes unstoppable, that day will wash out account balances of day traders who trade with huge leverage. But if you study swings, it works in both cases, if price is continuously rising or it is in range.
After reading your post, I feel like there is no evidence to support your claim. Keep in mind that not all strategies work on all market conditions. You mentioned Pivots don't respect previous highs and lows, and I have been using Pivots (no indicator needed since already know where they are) for about 5 years now and I seriously don't even pay attention to the highs and lows of previous day because its all based on my strategy and how I use pivots. If your trading lower time frames and your looking for pivots at those lower timeframes, that in my opinion is a big mistake. If you take a look at the image I attached, white lines were set by the PIVOT indicator. Orange horizontal lines were placed by myself prior to adding the indicator (Already knew where the PIVOT points were without the indicator).
You can't downplay an indicator if you simply don't know how to use it. I've been trading WITHOUT indicators for almost 2 years now. I used Pivots, Bollinger Bands, TDI and realized, I don't need them. Anyways, hope this helps you for your future trading.