Thread: Pivot Points

Most new traders think that the pivot point is a magic line that will change their account. Spoiler: it is not. If you enter because the price touched the pivot, without seeing structure, volume or momentum, you will burn faster than a wet match in gasoline.

Thanks to everyone who recommended sites. I already found one that gives me the updated levels with good format. I am now using them as a reference, but I still try to understand why of each level. No reflex operation.

I have a spreadsheet that automatically calculates my daily, weekly and monthly pivots. I made it myself with simple formulas. I’m no genius, I just had patience to understand the logic behind them. Any novice can do it if he’s really interested in learning.

One thing that has served me a lot is to mark the pivots and then look at how the price reacts on those historical levels. You will see patterns that are repeated. Sometimes a level does not work as a support, but it does work as a resistance. It all depends on the context and the moment.

Is there a place that gives alerts when you touch the pivot points? Because sometimes I get distracted and lose entry because I'm not looking. I know there are indicators, but I want something that sends me a warning to the cell phone or something.

I tried using pivot points in Asian sessions and the truth doesn't have much effect there. They respect each other more during London and New York. So if you operate out of time waiting for miracles... you better change your schedule or tool.

I don't understand how anyone can trade without having any idea where the central pivot of the day is. It's like driving without knowing which street you're on. It's basic. If you don't use them, unless it's because you have another methodology, not out of ignorance.

I love how some here make fun of pivot points and then you see them in other threads asking for key supports and resistors. Spoiler: Many times they are right on pivot levels. But of course, easier is to call it price structure and sound pro.

For those who operate with price action, marking pivot points may be useful to search for confluences. Don’t use it alone, but don’t ignore it. I have avoided several bad entries just to see that they were in the middle of two levels without relevance.

Not all that shines is gold. Sometimes the price breaks a pivot like it doesn’t exist. Does that mean it doesn’t work? No. Only it wasn’t the time. There’s no infallible tool. If you’re looking for certainties, you’d better open a bakery.