Which is The Best Pivot Point Indicator?
We use a classic daily pivot point indicator to help us find high probablity entry and exit locations on the charts.
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We just have a quick question here from Paul, asking whether we have a specific template that we use for the pivot points.
Now, Paul, not really, it's just a standard pivot point. Let me show you which one it is.
So if you open up your indicators on TradingView, it's just called pivot points standards, so it's just a standard pivot point indicator. And the settings are quite simple as well. If you just double click, you can either have it as a classic or a traditional it doesn't really make a big difference, you get fairly the same type of price levels. I've set the pivot timeframe to auto.
Of course, you can say daily, to give you the daily pivot, but it's not gonna give you a very good intraday view. So you can see the daily pivot for hour one, the daily for the daily pivot and then the S-ones.
So I prefer to just do an auto because then it'll auto correct for whatever timeframe you're on. And then in terms of the, I've chosen to remove the show historical pivots. The reason for that is I don't wanna clog up the chart with all the previous day's pivots.
Sometimes they can be useful, but I prefer just seeing the intraday gauge just on the pivots for the day itself. In terms of number of pivots look back, this one can, you can maybe change it to two, this isn't a setting perimeter for the pivot, it just tells you how many backward looking ones you have.
So if we take back the historical ones, it's now only gonna show us two. So if you have 40 here, it's gonna show you 40 days worth, if you have 60, it's gonna show you 60 days worth. So the number of pivots itself, this one isn't too important. In terms of style, I've just gone with the normal daily pivot as well as the S1 and the R1.
You can if it's a very volatile event that you're trading, let's say you're trading a central bank event or you know, you're trading a massive, massive economic event like NFP, you can mark up the R2 and S2 as well to give you a little bit of a further move to the downside. Obviously the charts are set on auto, right?
So, the challenge of that is it's gonna compress your chart to a lot smaller. So if I just open that up again, and I open up the S3, you can see how small the chart becomes. And then of course, that's not really useful from a price action point of view to look at it.
So I prefer to just have the S1 and the R1 on, as I said, if it's a major event that you're trading you might put on the S2 and the R2 as well, but it's really simple, nothing too major, no secret source of this, it's just a standard pivot just for some added confluence levels, in terms of targets and stop loss placement and entries.
Of course, we're using the ATR as well, so, it's just another tool to add on to the toolbox, used for measure in terms of intraday trading as well.
So, hope that helps. Any other questions, don't hesitate to let us know.
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If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
We just have a quick question here from Paul, asking whether we have a specific template that we use for the pivot points.
Now, Paul, not really, it's just a standard pivot point. Let me show you which one it is.
So if you open up your indicators on TradingView, it's just called pivot points standards, so it's just a standard pivot point indicator. And the settings are quite simple as well. If you just double click, you can either have it as a classic or a traditional it doesn't really make a big difference, you get fairly the same type of price levels. I've set the pivot timeframe to auto.
Of course, you can say daily, to give you the daily pivot, but it's not gonna give you a very good intraday view. So you can see the daily pivot for hour one, the daily for the daily pivot and then the S-ones.
So I prefer to just do an auto because then it'll auto correct for whatever timeframe you're on. And then in terms of the, I've chosen to remove the show historical pivots. The reason for that is I don't wanna clog up the chart with all the previous day's pivots.
Sometimes they can be useful, but I prefer just seeing the intraday gauge just on the pivots for the day itself. In terms of number of pivots look back, this one can, you can maybe change it to two, this isn't a setting perimeter for the pivot, it just tells you how many backward looking ones you have.
So if we take back the historical ones, it's now only gonna show us two. So if you have 40 here, it's gonna show you 40 days worth, if you have 60, it's gonna show you 60 days worth. So the number of pivots itself, this one isn't too important. In terms of style, I've just gone with the normal daily pivot as well as the S1 and the R1.
You can if it's a very volatile event that you're trading, let's say you're trading a central bank event or you know, you're trading a massive, massive economic event like NFP, you can mark up the R2 and S2 as well to give you a little bit of a further move to the downside. Obviously the charts are set on auto, right?
So, the challenge of that is it's gonna compress your chart to a lot smaller. So if I just open that up again, and I open up the S3, you can see how small the chart becomes. And then of course, that's not really useful from a price action point of view to look at it.
So I prefer to just have the S1 and the R1 on, as I said, if it's a major event that you're trading you might put on the S2 and the R2 as well, but it's really simple, nothing too major, no secret source of this, it's just a standard pivot just for some added confluence levels, in terms of targets and stop loss placement and entries.
Of course, we're using the ATR as well, so, it's just another tool to add on to the toolbox, used for measure in terms of intraday trading as well.
So, hope that helps. Any other questions, don't hesitate to let us know.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
