Anytime I try to post a thread on here, the end result is always the same. 3 snarky replies, and 5-7 off topic replies that make me seriously doubt the person even read the title of the thread. But here I go anyway! Worst it costs me is a little carpal tunnel, right? I was reading Person's book on Pivot Points recently, and he mentions at one point having a generally bullish bias anytime price opens above the pivot point and bearish when it opens below. I've been trying out different backtests to see if there's the germ of a strategy there and getting mixed results. So I'm curious if anyone else here has any pointers (no pun intended!) on pivot points and how to optimize using them for daytrading? Also as always, welcome any book or video recs. I've yet to find a great book on pivot points, and I've tried the obvious ones by Williams and Persons, same goes for the youtube videos on the subject. Alright, fire away with the aggot-crunching and/or non-sequiturs!
Back-checking/testing + forward testing is where you'll find your answers. If the claims of an author doesn't hold up in real life (likely), you'll have your answer. I used pivots back in the day, but stopped using them for some reason I don't remember. Maybe I discovered that they weren't useful or maybe I figured they didn't make sense logically. I may suggest you rather look into the Opening price and the rolling 50 % level intraday. That could possibly be more worthwhile.
John Carter covers how he trades them in his book Mastering The Trade. I used to use them exclusively, till I found what I use now - Gann, Fibs and especially PA S/R levels.
Another book you could look at is "Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market," Franklin Ochoa
This has been on my to-read list for awhile, thanks for reminding me to check it out! I also use initial balance and I hear it's great for that as well, ordering ASAP.
Nice, I have the Carter, read it when I was still a total newbie, so most of it was over my head, I'll go back and reread those sections.
Backtest I'm doing at the moment, the results are very good but the idea is so cavalier I'm not believing my eyes, so I'm thinking about it testing it out at baby size next week or two to see if it could actually work. First I'm hearing of rolling 50% level, what does that entail?
Glad I read this, thanks again for passing it along. It directly rejects the idea that price at the open above/below PP can be used directionally. That will definitely force me to be extra rigorous with my backtest, but I think I've found a way the idea can be workable.