Pivot Levels

[Ruby]

I would like to hear some opinions on Pivot levels in FOREX trading.

I use the IG Markets charting software, with daily candles beginning at midnight London time. Consequently the Pivots on this platform are calculated using the high, low and close of this daily candle, but I wonder if I should be using Pivots calculated from the H, L and close of the daily candle based on NY time - that is, opening and closing at 5.00pm NY time - 10.00pm London time. The Pivots I am using work remarkably well, but perhaps I could have greater accuracy.

Ruby

 

[Frank D]

Hi Ruby,

Pivots on forex should be based on GMT midnight hours

Currencies traded on globex (futures) should be based on NY midnight.

Therefore your pivots will differ

Even though both follow each other closely, currencies have a tendency
to move in 3 timeframe wave patterns:- Asian, GMT, and US.

What that means is, you might get a move upwards during Asian or
GMT trading hours from a pivot level, and then during the US timezone
retest their own pivot level and then continue with
the trend or reversal of the trend until the Asian timezone (GMT midnight)

I use both timezone pivots because this reason, and if you can try and
do the same.

 

[Ruby]

Hi Frank D,

Thanks for your help. My pivot levels are currently calculated on a day beginning at midnight GMT - now that London summertime is over - and I find the market respects them remarkabley well, but I will try adding them for the other time zones. It has been a confusing issue for me.

Ruby