Pivot

So, delusions such as pivots work ? :) Isn't that the strong or more potential profit making trading strategy to most of the traders out there.

Delusions/expectations can become self-fulfilling prophecies. Whether or not pivots have any genuine mathematical basis to provide support and resistance (something which would require careful analysis of charts made before anyone had ever heard of pivots), the more people who view them as valid S/R levels, the more effective they would become. Of course, once this starts happening and becomes widely known, then the "big fish" will know that there are a lot of stops just past the pivot levels, leading to an increase in price getting momentarily pushed into those target-rich areas.
 
Delusions/expectations can become self-fulfilling prophecies. Whether or not pivots have any genuine mathematical basis to provide support and resistance (something which would require careful analysis of charts made before anyone had ever heard of pivots), the more people who view them as valid S/R levels, the more effective they would become. Of course, once this starts happening and becomes widely known, then the "big fish" will know that there are a lot of stops just past the pivot levels, leading to an increase in price getting momentarily pushed into those target-rich areas.

Oh! that's how the small fishes are eaten by the big ones. Its sad but true fact. Only if one has good amount of money to withstand such huge drawdowns or rather more importantly the contentment of making small consistent gains should be helpful to an extent isnt it?
 
It is kinda paradox huh? But I think not only pivot, even chart pattern as well in my opinion

Each trader must know that Pivots are not just the only thing we have to look out for but they must serve as a guide in deciding our further trades.
 
It is kinda paradox huh? But I think not only pivot, even chart pattern as well in my opinion

True. With just about any indicator, pattern, etc, even if there's a sound mathematical/statistical basis, once it's known, expectations reinforce it and big fish try to take advantage of it.
 
True. With just about any indicator, pattern, etc, even if there's a sound mathematical/statistical basis, once it's known, expectations reinforce it and big fish try to take advantage of it.

Very very well said. I believe many people are too rely on indicator, pattern, or any whatsoever just to convince themselves for a trade. In fact, I believe and more rely into supply and demand. I believe most of people out there ignore the most important fact that SUPPLY/DEMAND play the most important role when a situation consist of BUY/SELL.
 
Each trader must know that Pivots are not just the only thing we have to look out for but they must serve as a guide in deciding our further trades.

As I said, it is just another terms to convince themselves to go for a trade. Pharoah well said it is just base on mathematical/statistical. Just ask yourself, exchanges market is not a machine. Why must they repeat themselves? If they doesn't, why should those pivot works?
 
As I said, it is just another terms to convince themselves to go for a trade. Pharoah well said it is just base on mathematical/statistical. Just ask yourself, exchanges market is not a machine. Why must they repeat themselves? If they doesn't, why should those pivot works?

Yes i know that whenever i am planning for my trading i need to think about many things first. And only when my trading based knowledge is correct i am going to get the best results.
 
Yes i know that whenever i am planning for my trading i need to think about many things first. And only when my trading based knowledge is correct i am going to get the best results.

That's great. In my opinion, I will advise people to more focus on SUPPLY and DEMAND instead of those indicators, charts pattern etc. In fact, many people ignore or forget the very basic chain of trading, whenever there are BUY and SELL involve, it must consist the rules of SUPPLY and DEMAND.
 
That's great. In my opinion, I will advise people to more focus on SUPPLY and DEMAND instead of those indicators, charts pattern etc. In fact, many people ignore or forget the very basic chain of trading, whenever there are BUY and SELL involve, it must consist the rules of SUPPLY and DEMAND.

Yes the fact remains that if we will have a good grasp on the Price Action then it will become a lot more easier for us to do our trades and this will also enable us to make better trades.
 
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