[mister ed]

Before each RTH session on the ES I prepare the “pivots�, the classic floor trader pivots plus others that are not strictly pivots but I call them that. The ones I use are:

The classic pivots I already mentioned, from the top:
R3, R2, R1, PP, S1, S2, S3.
I also make sure I have Yesterday’s H, L and C.
I also have the overnight trading’s H and L.
And finally yesterday’s VAH, POC and VAL.
When the RTH session opens I also make note of the opening price and use that too.

Can I be honest here, I HATE doing this. I wont draw these levels on my chart, the chart looks like a football field if I do, I just have them listed, from the highest to lowest next to me to refer to. Why do I do it? Well as you are all no doubt aware the market tends to respects these levels.

When I say this, I mean they are generally respected as zones of support or resistance, not meant to be relied on to the exact price, and as often as not completely disregarded. If I ever figure out the exact prices that are going to hold, I will be sure to let you all know.

Trading for Tue. Nov. 6 (2007) was a great example.
I had the o’ night high at 1514.75, R1 at 1515.25, & Monday’s high at 1516.25. That’s 3 in the space of 7 tics.
The first little swing up got to 1515.75, right between R1 and Monday’s high, tested there twice.
Then swing down to 1511.50, 3 tics below the VAH for Monday at 1506.25.

Next swing up to 1516.50, one tic above Monday’s high.

Extended swing then down to 1503.50, with pivots just above it 1503.75 (Monday’s close) and 1504.75 (the day’s PP).

Next good swing up to 1511.75, 2 tics below Monday’s VAH.

I wont go on, and I am not really sure what my point is. I suppose my point is that I am quite capable of looking at a chart and coming up with reasonably good support and resistance zones myself and then monitoring how the market is trading when it gets there and making my decisions accordingly. What I don’t get is these pivots, apart from yesterday’s H, L & C and today’s open) are just there because they are there…(Let me just add that I think the VAH, POC, and VAL pivots are rock solid and well founded in science – there, now I should avoid the death threats from the MP crowd).

Does anyone have any thoughts on all these pivots, using them, not using them and so on?