Pivot Point Indicator
- Thread starter foreigner
- Start date
Re: Pivot Point Indicator - New Tool
Yes, of course, you're right. I realise that when I am being facetious it may be difficult to detect. I certainly don't code pivot tools just to pass the time. There are a few horizontal line tools in my kit and I wouldn't be without any of them.
Here is a current example of levels at work in one pair, the AUDJPY.
Notice how the confluence of prior day high and close together with the MR1 level managed to hold the market back for some hours.We can see the typical Asian run down to bounce off the daily pivot before running higher. Since the price is stalling ahead of tomorrow's Australian employment data it took the opportunity to let both R1 and MR2 act as real resistance. The switch of the confluence area from resistance to support can also be seen clearly. Note too that the institutional 80 level was identical to MS1. This market is so controlled and orderly that correlation between horizontal systems can be extreme at times.
rod178 said:
Yes, of course, you're right. I realise that when I am being facetious it may be difficult to detect. I certainly don't code pivot tools just to pass the time. There are a few horizontal line tools in my kit and I wouldn't be without any of them.
Here is a current example of levels at work in one pair, the AUDJPY.
Notice how the confluence of prior day high and close together with the MR1 level managed to hold the market back for some hours.We can see the typical Asian run down to bounce off the daily pivot before running higher. Since the price is stalling ahead of tomorrow's Australian employment data it took the opportunity to let both R1 and MR2 act as real resistance. The switch of the confluence area from resistance to support can also be seen clearly. Note too that the institutional 80 level was identical to MS1. This market is so controlled and orderly that correlation between horizontal systems can be extreme at times.
foreigner said:
Human time zones. Yes, definitely human time zones. Although, many of them still don't get it.
Sorry, couldn't resist.
The answer is any and all. The tool is generic and works in any liquid market with enough participants so it works just fine no matter which server time window is peered through.
People are people. It is their collective behaviour that is mapped by price action charts. Sure, the lines may differ a little in their position if one adopts a different measurement of daily cycle time, but this is inconsequential.
There is no ideal day hidden somewhere in the passage of 24 hour time cycles, there is no magic. Individuals may well become accustomed to or more comfortable with one particular viewpoint and that is fine. It doesn't make theirs or mine any better or worse than another.
I personally think that the most sensible perspective is the one adopted by MetaQuotes, which houses (or "home-bases") their servers in UTC+2 or 3 (depending on DST). This makes New York close the end of the natural day cycle and generates 5 full trading days per week, with no little annoying Sunday trading to mess things up.
The other common approach is to base the cycle on UTC. This seems to me to offer no benefits and some real costs but it remains popular with many brokers nevertheless. Mind you, brokers have been known to wise up and make the switch. Global Prime is one example, see here: http://www.forexfactory.com/showthread.php?t=439997
But to get back to your question, I can assure you that the pivot tool will detect and project meaningful support and resistance levels no matter what time your quotes server is set to. Thinking that one time slice is better than another is a version of the grass is greener syndrome in many cases. Then again, perhaps having slight variation in levels by having substantial numbers of traders "trapped" in slightly offset "days" helps to keep markets moving.
I will put some horizontal line tools together in a thread. You may find something useful in there.
rod178
Well-Known Member
My strong preference is for 2/3 Broker feeds, which produces NY Close Pivots, although I sometimes use the likes of Oanda for Bond correlations etc. The issue with the likes of Oanda is that the feed is NY time. In such cases I shift the Pivot start to NY Close to keep my charts consistent.
Whether or not NY Close Pivots are 'the best' is mute, although that is my preference, especially for trading the London Open. Consistency across charts is however desirable.
Whether or not NY Close Pivots are 'the best' is mute, although that is my preference, especially for trading the London Open. Consistency across charts is however desirable.