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What time to use as END OF DAY for calculating pivot points?

Discussion in 'General Forex Talk' started by Herringtrader, May 31, 2010.

  1. Herringtrader

    Herringtrader Private

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    Hello everyone,


    I am thinking about using pivot points in my trading but not sure what time to use as END OF DAY for calculating pivot points.

    fxbootcamp.com uses Tokyo open (which is usually London midnight)

    fxknight.com uses GMT midnight

    theforextruth.com uses New York midnight

    fivetictrading.com uses New York 5PM

    They all claim to be successful, profitable traders. How can that be? How can they all use pivot points successfully when they are all looking at different pivot point values?

    If you are successfully using pivot points in your trading, could you please tell me what time you use as END OF DAY for calculating pivot points, and why you chose just that time?


    Thanks,

    Herringtrader
     
  2. Pharaoh

    Pharaoh Colonel

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    That's the problem with a 24 hour market - different people use different end of day points. The S/R of pivots can be a self-fulfilling prophecy, so daily pivots work better when everyone agrees on when the day ends.

    Perhaps stick to weekly pivots. At least everyone knows when the trading week begins and ends.
     
  3. Forexwatchman

    Forexwatchman Sergeant

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    Well here's yet another time for you to consider using, 8:00 GMT when the London Stock Exchange begins it's day. The majority of volume and fundamental developments happens between the London open and New York close, so I want my pivots to be recalculated at the start of a each new day in London. I actually just posted a video regarding my use of daily pivots over at my website if you're interested. This setting worked perfectly at predicting yesterdays huge sell-off and even larger rally on the EUR/USD as well.

    The thing with pivots is that they are so popular that they do become a self-fulfilling prophecy much like Pharaoh said. But they aren't a consistent enough indicator to use exclusively by itself to base your entry and exits on. But when used in conjunction with other popular indicators such as fibonacci lines and support/resistance lines, you can combine them to create much more informed decisions as a trader. Weekly pivots work much better and I pay way more attention to them especially when they coincide with other previously mentioned indicators.
     
    #3 Forexwatchman, Jun 2, 2010
    Last edited: Jun 3, 2010

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