Pivot points: daily, weekly, and which formula

[FXS London Scalper]

Pivot points remain popular for intraday levels. There are several formulas, and which one the market respects is debatable.

Common versions:

• Classic: pivot = (high + low + close) / 3, with support and resistance levels derived from it.
• Fibonacci: same pivot, levels at Fibonacci ratios of the range.
• Camarilla: levels close to the previous close, used for intraday reversals.

Issues for FX:

• Which close? It depends on server time. A broker on GMT+2 gives a different daily candle from a GMT one, and different pivots.
• Many traders use them, which can make them self-fulfilling, but only if they use the same ones.

A practical approach: use classic daily pivots on a New York close (17:00 New York) basis, which matches most brokers using GMT+2/3. Compare touches and reactions at pivots with random levels at similar distances.

Whatever formula you choose, keep it fixed for a long sample, because switching between formulas after a few losing trades makes any conclusion meaningless.

Do you use pivots, and which formula?