Intraday Trading Tips: TRADITIONAL PIVOT POINTS VS REALTIME SAMPLING. TRADITIONAL PIVOT POINTS VS REALTIME SAMPLING Mike takes a quick look as to why traditional PIVOT calculations are simply wrong for FOREX trading! In short: traditional PIVOT points are NON-USABLE for FOREX And they usually provide the WORNG PICTURE for short-term trades! A bit of history on PIVOT POINTS.. PIVOT Support / Resistance points have been used by floor traders on the exchanges for many years to set price ranges and next-targets for based on “checkpoints” and direction sentiments. Unlike in stocks, traditional PIVOT points are NON-USABLE for FOREX! Stocks have a daily “chill-out” of over 12 hours where trader has no control The Following day is affected based on previous day’s performance A Stock is not tradable until following day’s open, needs Short-term PIVOTS are based on previous day’s HLC, example: 1m chart PIVOT uses sample of over 350 “bars” 5m chart PIVOT uses sample of under 100 “bars” 15m chart PIVOT uses sample of less than 30 “bars” 30m chart PIVOT uses WEEKLY HLC with sample of over 60 “bars” 1H chart PIVOT uses WEEKLY HLC with sample of about 30 “bars” Inconsistent samples used (Simply put – it’s a statistical flaw) Pivots provide WORNG targets for scalping and most INTRADAY Pivot samples for 1m-20m charts are skewed towards longer term Stocks continuity SUCKS for short-term trading. FOREX is KING! A predetermined sample (30 is used by most professional traders) Works on all timeframes to depict better PIVOT levels Consistent on all charts from …

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