[fintrans]

Hi folks:

I need to start this question with a quote from John F. Carters' book 'Mastering the Trade':

'It is important to note that it is extremely rare for a stock index to hit its daily R3 or S3 levels. This is important to know because if a market rallies to R2 or sells off to S2, that usually ends up being the dead high or the dead low of the day'.

Well - if anyone was watching EUR/USD on Friday you will note that it shot through (almost without stopping) the daily R1 and R2 and closed around the mid point between the weekly pivot value and the weekly R1 value (which just also happens to be the same value as the monthly pivot).

My questions are:

1 - In a case like this which pivot point values would be key to watch in the next week (assuming that you are trading intraday)? What I mean to say is that in a case like this it would appear that the daily pivots are no longer valid.

and

2 - The quote above specifically mentions stocks (which I mostly trade) but is it reasonable to expect the same 'rules' as it were to apply to forex pairs?

and

3 - Do you think that the above i.e. pivot point trading also applies to commodities?

(Hope you don't mind me asking these questions here - new to THESE forums - found them while searching for contact information for John F. Carter or his organisation).

Regards,

Dale.