What Trading session to use when calculating pivots in Forex markets?
Wednesday, November 25th, 2009 at
4:01 am
i trade and know how to calculate pivots but i am kinda new to forex. i was just wondering what inputs for pivot calculation to use? London session, tokyo or US? is there a specific time frame that everyone uses? do i use US market times to calculate the pivots if i trade in the US session and tokyo session pivots to trade tokyo time? does every trading session use different pivots?
The best periods to calculate pivots are the daily and weekly periods. If you trade with daily charts, use the weekly pivots. If you trade intraday, use the daily pivots.
Good luck
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5 comments
As you have mentioned that you are new to Forex Trading, the first thing I would like tosay that please don’t depend only on Pivot points or any single technical analysis. In Trading we need to first have an overview of Fundamentals (like a canvas on which we paint a picture for longer term) to Technical analysis for shorter term.
Forex Trading, unlike stock (share) trading, is not bound by national exchanges and hence is open 24 hours globally. Because of this simple fact traders end up in calculating pivot points for different time zones. London being the center of Forex trading (because it overlaps all time zones), makes people think that GMT 00:00 is the right thing to calculate pivot points but I completely disagree. A trader waking up in New York may calculate it for his/her previous day and not for London’s waking ours and that may work.
We at http://www.ForexAbode.com/ would initially put our results for US session but are planning to do it all the sessions soon.
References :
http://www.ForexAbode.com/
The best periods to calculate pivots are the daily and weekly periods. If you trade with daily charts, use the weekly pivots. If you trade intraday, use the daily pivots.
Good luck
References :
My experience in trading Forex
You can really use all the sessions if you want to. However, most traders calculate pivot points based on their broker’s time.
References :
The most important step is to find the right forex broker. I have reviewed some of the best forex brokers at http://www.forexlane.com/brokers.html
References :
Hey Guardian .
Hope you are well.
It does not really matter which market you use.
However you can calculate the pivots for each market depending on the time they open and close. you can trade those levels where you have confluence. Meaning where 2 or more pivot levels overlap. These levels have a higher probability of acting as a good support or resistance point. Confirm with your technicals too though.
I use the London market mainly if I am trading the 5 minutes chart as most of the time, this market experiences high volume trading
Here is what i do : (i use the close and open of the UK market)
-Use the open, high, low and close of the UK session.
Once you get those right calculate the pivots.
Time may vary depending on your broker of choice, If you are having difficulties getting the time right, you may always contact your broker and ask them the time difference between their brokerage time and the time in GMT. That may help get the close and open of each market right.
Best of luck
Ash Naeck
http://www.forex-trading-domain.com
References :
http://www.forex-trading-domain.com