Why are pivot points being ignored?

[adman]

Since the USD started showing real strength on Friday, Nov. 12, 2010, supports, resistances and reversals are not occurring at pivot points.

Does anyone have an explanation? Is it because the risk/reward of trades is so skewed right now by volatility? (as it usually is when a major trend reversal is underway). Is it because regular ("normal"?) traders are staying on the sidelines because of the increased volatility? Regular traders tend to employ pivot points. This is my explanation. It is the only reasonable one I can think of. I note that Sive Morten also made a comment early today about the lack of pivot points.

 

[Pharaoh]

Many technicals only work because enough traders believe they will work and place their trades accordingly. The current wild instability in prices is blowing through a lot of technical support and resistance.

Daily pivots have their own inherent issue in forex. Different traders chose different times for the beginning and end of the day. In markets that have defined opening and closing each day, that's not a problem. In forex, it is.