| Many day trading systems rely on pivot points to | | | | trade. |
| determine where the market may go next and | | | | How can you accurately predict where prices are |
| believe that these indicate important points of | | | | going to go in such a short time period? |
| support and resistance that can be acted upon for | | | | Pivot points are of no use whatsoever in a short |
| profit. | | | | time frame. |
| Let's take a look at them in more detail. | | | | Think about it. |
| A pivot point is a point of rotation hence the name. | | | | Trillions of dollars are traded each day by many |
| Pivot points are support and resistance levels derived | | | | millions of participants and most of these are not |
| from the previous period's high, low, and closing | | | | interested in daily or intra day action and pay no |
| values. | | | | attention to it. |
| The period by day traders in currencies is normally | | | | The ones who do, tend to be the mug speculators |
| taken from the daily chart or from the hourly chart. | | | | who think day trading works and of course it doesn't. |
| You can also combine pivot points with traditional | | | | To make money with any form of technical trading |
| support and resistance techniques to enter and exit | | | | you need to have data that you can use that can |
| trades | | | | help you get the odds in your favor. |
| In simple terms a pivot point is used to denote | | | | Daily or intra day pivot points don't help you do that. |
| support and resistance within the period traded. | | | | It looks good as theory on paper, but try it in the |
| So do they work in day and intra-day trading? | | | | market and you will lose your equity longer term. |
| I have never seen anyone make long term profits | | | | TRY THIS SIMPLE TEST |
| with them. | | | | If any vendor tries to sell you a system based upon |
| I see lots of vendors of systems that claim they do, | | | | pivot points, ask them for their real time track record |
| but never seen a track record of real time profits. | | | | of profits over the long term and see if you get one. |
| Fact is this has to be one of the stupidest ways to | | | | |