Hi MyPivots collaborators,
I know that I have to use the prior Pivot Point (PP) for the current day.
How about the current week and current month?
1) Do I have to use the PP of January in February, PP of February in March, and so on? Similarly, do I have to use the prior weekly PP on this week?
2) Or could I use the last 21 days excluding the current trade day to build the current monthly PP ? Is it a big mistake? If yes, why?
Thank you in advance for the answers.
DA
day trading
Rep: 39,586
Posts: 6,369
The short (but unhelpful) answer is whatever works best for you.
More helpful, I hope, is to use the prior week if you're trading on a medium time frame (swing trading) and monthly if trading (really investing) on a longer time frame. Yes, you should be using the previous month to be consistent with what everyone else is doing. However, I have often advocated for a having a trailing proxy for a month instead of using a calendar month. So you might, for example, use a 4-week trailing pivot point instead of calendar months.
I have not, however, tested any of this so this is just logic that I'm applying.
More helpful, I hope, is to use the prior week if you're trading on a medium time frame (swing trading) and monthly if trading (really investing) on a longer time frame. Yes, you should be using the previous month to be consistent with what everyone else is doing. However, I have often advocated for a having a trailing proxy for a month instead of using a calendar month. So you might, for example, use a 4-week trailing pivot point instead of calendar months.
I have not, however, tested any of this so this is just logic that I'm applying.