Study says pivots don't work?

This simple study says that pivot points don't work; they author tested 10 major currency pairs for 2006 to the present and found that the price was no more likely to revert back to the pivot point than any other number [url]http://www.myforexdot.org.uk/PivotPointAnalysis.html[/url].

If pivots work, can someone suggest something that can be back tested to show that they have some statistical significance?

Hey guys - if you want to discuss Al Brooks then please can you start a new topic. There have been some complaints that this topic is going off-topic. Just post a link to the new topic as a reply to this topic.

09-Sep
High 1036.25
Low 1023.25

Intraday
H 1034.50 14:50 CT

Classic - Daily
R2 1036.25
R1 1030.50
PP 1021.50

Classic - weekly
R1 1033.00

R2d perfect match to high and PPd close to the low
R1w good fit to second high of 1034.50

10-Sep
High 1044.00 VS 1046.75 +2.75
Low 1027.50 VS 1029.25 +1.75

Intraday
1038.00 10:07H VS 1039.50
1034.50 11:21L VS 1033.00

Classic - Daily
R2 1046.75
R1 1039.50
PP 1029.25

Classic - weekly
R1 1033.00

(With the low being -1.75 to the PP, subtracting 1.75 from R2 gives 1045 only 1 pt from actual 1044)

Suri Duddella's book about chart patterns has a good Pivot system.
He uses the 1st Hour's OHLC to calculate pivots for the day.
I tried using the first 30 minutes' OHLC, and it worked better than any other Pivot system I looked at.
I think the important thing is to look for confluence levels of weekly, standard and 30Min OHLC pivots.

14-Sep
High 1045.25
Low 1029.50

Intraday (CT)
1040.00 10:22 H
1036.25 12:19 L

Classic - Daily
R1 1042.75
S2 1028.00

Classic - weekly
R1 1051.25
PP 1029.75

Good match for the low to both the S2d and PPw.

15-Sep
High 1052.00
Low 1038.25

Intraday (CT)
1038.25 09:16 L
1050.00 12:58 H
1046.00 13:46 L
1052.00 14:24 H

Classic - Daily
R1 1050.75
PP 1038.00

Classic - weekly
R1 1051.25
PP 1029.75

Notes:
1. Excellent match of daily PP to the low -.25 and R1d very close for the high -1.25. R1d excellent match intraday high of 1050.

Weekly R1 almost exact match to the high -0.75

16-Sep
High 1064.00
Low 1047.25

Intraday (CT)
1047.75 08:53 L
1063.75 13:15 H
1059.75 14:01 L
1064.00 14:58 H

Classic - Daily
R2 1059.25
PP 1045.50

Classic - weekly
R2 1065.25

Notes:
R2w fit today's high quite well +1.25
PPd was -1.75 to the low of the day.
R2d matched the low of 1059.75 -0.50

Hope it helps

These are the areas I'll be watching tonight & tomorrow
R4 1077.67
1075.04
R3 1072.42
1069.79
R2 1067.17
1065.88
R1 1064.58
1063.25
PP 1061.92
1060.63
S1 1059.33
1058.00
S2 1056.67
1054.04
S3 1051.42
1048.79
S4 1046.17

17-Sep
High 1071.50
Low 1056.25

Intraday (CT)
1071.50 09:00 H
1062.50 09:24 L
1069.00 10:28 H
1056.25 12:27 L

Classic - Daily
R1 1070.25
PP 1057.25
S1 1050.75

Classic - weekly
R2 1065.25
R1 1051.25

Notes:
R1d fit today's high
PPd fit low of the day.

Hope it helps

[quote]Originally posted by redsixspeed

These are the areas I'll be watching tonight & tomorrow
R4 1077.67
1075.04
R3 1072.42
1069.79
R2 1067.17---- High 1067.75---- RTH High 1067.25
1065.88
R1 1064.58
1063.25
PP 1061.92
1060.63
S1 1059.33---- RTH Low 1059.25
1058.00
S2 1056.67---- Low 1056.00
1054.04
S3 1051.42
1048.79
S4 1046.17

Study wasn't usin' them right. Nuff' said.