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In a message dated 97-11-24 00:04:20 EST, meyer@xxxxxxxxxxx writes:
> But before I begin, I must say that your question about who has a
> successfull trading strategy with pivots is pretty shallow. You know as
> well as I do part of the journey is self discovery of trading
> techniques. There is nothing wrong with asking for help along the way.
>
I don't think its a shallow question at all. If people tell me they have
found a way to use something, then its worth pursueing to try and adapt it,
but if a whole lot of people say there is no value, I have to ask myself if
its worth my time.
<snip>
>
> I know that many who use TA have know idea why it works, but that it
> works or it doesn't. But if you know why it works, you can begin to
> think for yourself when confronted with new TA problems.
> So it is not the point that I use the red pivot or the blue pivot. But
> that I know how all the pivots work. So your notion of a 1 and 14 chance
> doesn't pertain here.
>
All pivots work the same, has nothing to do with the math. The math is just
how they are calculated. They work the same as any support/resistance area
does. If price is going down, there is a level at which traders feel price
will be supported and so they start buying, the stops the down move.
Opposite on an upmove. In many ways the different ways of calculating them
is a sort of curve fitting to try and better match the data. Experience
tells me that no matter the past, which ones will work better in the future
is still a matter of probablity. A bottom line definition of Technical
Analysis is when you see a pattern that repeats in the past, there is a
higher than average probablility it will repeat in the future.
Pete
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