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Now they're just points of reference like a 50 and 200 day MA. Psychological levels. I think you could visually look for congestion levels on a chart, weighing recent action more heavily, and do better than these lines. That's all MP is anyway.. |
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Totally agree. I actually wouldn't doubt that plotting previous day high low and close wouldn't do better than deriving some averaged levels from these levels. I think its interesting that if you randomly draw a line on a chart, you can probly convince yourself that price is respecting that level to some degree even though its just random.
I could even see from an MP standpoint how pivots would have been good for locals even just as a risk management tool so that they weren't trying to make markets at those levels and get caught hugely lopsided if the market moved in one direction heavy. Considering you can do much more in depth analysis at home behind a screen than in the frenzy of a ring, I just don't see why anyone would bother with pivots.