Pivot targets

Many traders get very focused on the point that the pivots levels are referred to as support levels and resistance levels. With that in mind they tend to think less of the possibilities of using the S and R levels as targets.

We have already looked at the pivot point hit statistics, which can give us targets for trading price back to the primary pivot point. In this section we are now looking at the odds of price hitting the support and resistance levels so we can use them as targets. The diagram below shows what is meant by a hit. In fact this 60 minute chart showing the daily pivots shows a rare occurrence, you will see why when you look at the stats.

You will notice that when you are looking at the data, there is much less chance of the higher time frames R3 and S3’s being hit then say the 4 hour R3/S3’s being hit or exceeded.