I'll try to add my input on this. I started off initially as a pivot point based trader. Ive added Market profile, tape, and market internals ever since so I am pretty comfortable using pivots into my trading style/methodology.
Here's the thing. Pivot points are excellent for entries. Im comfortable with the risk and entry can be made ahead of
the crowd. Stops are usually placed 10 pts on the YM from my entry. However, I find that one needs to truly understand market internals to trade pivots with a higher probability of winning. Internals tell alot if the pivot is going to hold or break. 3 things I watch for: market internals, volume, and tape. I particulary like when price violates a pivot by a few ticks, price rejection on tape, and then back below/above the pivot. In my opinion, its alot easier to trade off pivots when combining another analysis such as; double top at a pivot on lower volume or price & TICK divergence at a pivot.
Also pivots are not exact science, so price can fall short of reaching a pivot and reverse. You can look to use midpoints to partial out of your trades. I tend to exit a few ticks before price reaches the next line of pivot. "Dont be a dick for a tick". Trying to squeeze that 1-3 tick is alot more costly. :p
On Jan. 30, 2007 the YM pretty much wiggled inside value the majority of the time indicating a balanced and choppy market. My best advice is for you to spot this out within the first 30minutes and just stay away from it. I got chopped out with 2 pivot plays on the ER2 that day. A couple of steps I use to identify chop is by reading the tape early at the open and the 30minute range. If volume is low in the first 15-30min... you can pretty much expect a dull market. Im no scalper so most of the time I'll try my
best to stay away.