There is a lot of be said about "Pivots" and a lot of people mean different things with that word. What I am showing is the ''Old-School'' definition of that term.
Pivots are as simple as this: (H+L+C)/3 of the previous period = Center Pivot (P) in current period. The the 'Support' (Sx) and 'Resistance' (Rx) pivots are calculated based on above equation. There are many variations used these days, but the ''Traditional'' is the first, and I think most commonly used.
What do they tell you? The seem to make good TARGETS for a move, and often lose energy there. Many traders will look to take profits at a Pivot, which is obvious in above chart.
I will add updates with more explanations later, after this is up.
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I have posted a follow-up to this tutorial here (Chapter 2):
Please see the above for a ''Kind of Advanced'' use of the ''Pivot Points Standard'' indicator.
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I have posted another follow up (Chapter 3) here:
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Just posted an Idea with current Pivot status and what Pivot Traders might be thinking:
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I have just posted a current example of a possible Pivot Point Play in XMR/BTC
Nice one and well explanations. Will you share the indicator with us?
Thank you very much.
BDC604
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You have converted me to an avid pivot tracker, too much correlation to ignore.
Please keep up the good works.
sdkujn
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Great Chart Examples! Curious your ideas of stop loss. We could put it under a previous pivot but that's a lot of exposure. We could put it under a previous bar that was a low. I don't see in your pivot point many examples anything about SL. Any thoughts are appreciated.
EuroMotif
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@sdkujn, Hi, most pivot traders use them for Profit Targets, more so than SL's.
If entering based on a pivot bounce, then yeah, put the SL just on other side of Pivot.
Once price is moving, I would trail the stop behind price, and look for next pivot as possible exit.
sdkujn
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@EuroMotif, That sounds reasonable. Thanks for replying. Appreciate it.
TEXAGG22
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Any thoughts on the Fibonacci setting in pivots?
EuroMotif
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@TEXAGG22, HI, I do take peeks at the other settings in the TV indicator.
The Fibonacci setting is often interesting.
The Camarilla seems popular with some Forex traders (but R4 and S4 is what Camarila fans use most)
But I just flip through those to look for confluences.
Thank you very much.