Pharaoh
Brigadier General
- Messages
- 20,308
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.