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Chapter 15, Part III. Other ways of Pivots calculation. Page 4

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 21, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    FIBONACCI PIVOT POINTS


    This approach is mixing of the classical pivot approach and camarilla approach. They use PP as classical one but also use multipliers as camarilla pivots, although these multipliers are Fib ratios:

    R3 = PP + RANGE * 1.0

    R2 = + RANGE * 0.618

    R1 = PP + RANGE * 0.382

    PP = (H + L + C) / 3

    S1 = PP – RANGE * 0.382

    S2 = PP – RANGE * x 0.618

    S3 = PP – RANGE * 1.0

    Fibonacci Pivots attempt to combine Pivot algorithm and qualities with Fibonacci ratios. I do not know how they work or if they work at all, but here we show formulas, may be you will need them later.
    Pipruit: Well, I’m a bit scared to ask it, but still what method is best?​
    Commander in Pips: And why are you scared?
    Pipruit: Because of suspicion that I know your answer… “there is no single best method”, right?​
    Commander in Pips: Heh, sure. Let’s see. Different ways of calculation will give you different levels. As you understand many traders use different indicators and tools. For instance, somebody use MACD for trend estimation, other MA, and another one SAR etc. Hence, may be MACD better works with classical pivots, but MA better works with Camarilla, who knows? Also a lot will depend on criteria of trend shifting and other nuances. The point is that you should find those that will better work with your trading style and tools. That’s why there is no best method.

    Another thought is – there were some reasons why some people, say Nick Stott has invented Camarilla Pivots, right? Hence he was not satisfied with standard pivots, but somebody else uses standard pivots and is absolutely happy. This is a question of suitability and trading style – all this stuff is very personal.
     
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