I looked at the pivot farm numbers back in the days when it was free...however long ago that was but anyway the levels for the euro were pretty good, the levels for the other stuff were hit or miss as I remember.
Like anything else the best way to do it is to look for some PA to jump on around those spots....they are areas they believe to be support/resistance so you trade them as such...they have no magical properties so.....
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take all pseudo-scientific fads...
as opposed to the hard scientific or true science indicator methods...lol. I was wondering and wanting to hear more about that. Does science or solid math even have a role? Brokers need all of those excitement areas. Is psychology pseudo-scientific? The "how people decide", part of the trading equation is very interesting. Generally it is my hallucination about how others will react that governs each so called trade set-up.
I'm wondering if you rely on pseudo science or something else and if you will talk about that.
Ok here my 2cents which is worthless but to myself, all retail traders trade off of what they think is the best areas to do business(pivots,moving averages, etc, but I think institutional doesn't care, they even let the market run in the way of retail(pulling liquidity) to trap more in before they pull it back. I believe its solid math they operate off of, and their math programs know the psychological points that retail cannot withstand, so they take retail out.
The ones that trade in the correct direction but overcome normal psychological numbers that shake out the majority are the real winners.
Last edited by Rad4633; May 16th, 2012 at 04:48 PM.
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Hey guys responding to Energy Frank, I looked at the power zones when they were offered at no charge, I have a few trader friends that subscribed for a brief period of time meaning several months from what I was told and confirmed what I experienced in my short time using them, they are very similar to many free S/R tools you can use on Ninja Trader or any other major trading platform. The levels seemed to be hit or miss more times than not. The guy who sells the service was pretty nice at answering questions during webinars, he tried to answer questions as best he could but I could never find any specific trade setups he used with the zones to take trades. On his site I believe he recommends using your own indicators with his levels to trade, I just couldnt justify the results of using PivFarm levels as compared to my own free indicators for $50 or 60 per month. One thing I did find upsetting though was he pushed the notion that his levels used Market Profile and evolved over time which as anyone whos somewhat experienced at using MP would know you would have a cluster $hit storm of levels if you continued to draw up levels of previous Market profile TPOs. Might as well just stick to multiple fib levels if your going to claim that much. Needless to say many times price seemed to float around the zone levels which made entries again hit or miss. Overall while it seems like a great tool, as a monthly subscription I could not recommend it, and as far as the guys that actually subscribed to the premium monthly service out of the 4 people I personally knew, none of them are still paying for the service they didnt complain about they just said it didnt offer them any sort of edge when trading. That being said it may just not have appealed to their style of trading I know it didnt benefit me and I am an intraday trader mainly, looking for several points a day. It may suit other types of investors or long term traders perhaps.
Hope this helps
I have subscribed to the levels for a while. They are useful especially to newer traders. If all you ever do is restrict your trading to the zones and added your own "indicator" for direction you are better off than most noobs.
One of the key benefits is psychology. You are initiating trades from areas that make technical sense such as previous session highs / lows, area of significance in volume profile or when all of these line up. Personally these are my favorite areas - when volume profile, fib and market profile, floor trader pivots all line up in certain zones.
Could a person do this on his or her own? Absolutely no reason to sub if you are good at finding levels.
I personally use the zones in conjunction with momentum signals which is a proprietary chart developed by Fulcrumtrader. This system works well at the open if market is near or inside of a zone. Direction is given by the indicators and the zone provides the trade location.