Free Signal Generator for Traders

2 comments

• 

  Felix

  13 years ago Reply

  Hi Mark, I wrote on this a few days back but you probably busy or miss my thread. Read somewhere that we use daily pivots for lower TF such as less than 1hr, then weekly pivots for more than 1hr & finally monthly pivots for daily charts. Can confirm is this correct?

  Also, some pivot calculator include filling in the opening price, ie. H,L,O,C – is opening necessary? Thanks.

  • 

    A

    Mark Rose

    13 years ago Reply

    Hi Felix, sorry I missed your last comment. Personally, I’ve only used pivots for day trading, but I can see no reason why you can’t use weekly and monthly pivots for longer timeframes. I know that many people do this. The principles behind pivot points is that prices will revert to a ‘mean’ – and that’s as true in longer timeframes (in fact, even more so!) Again, I’ve always stuck with bog-standard pivots, rather than those that include the opening price. I can see that this may give a better ‘mean’ number, but bear in mind that when you’re putting key levels on a chart, you want to be putting them in the same place as other people, as that’s where all the orders will be racked up. That’s why there’s a benefit in copying the crowd when it comes to drawing levels. I’d be really interested to hear how you get on with using different pivot levels (I promise to watch out for comments next time!)