Been incorporating pivot points into my daily EUR/USD and GBP/USD setups for the past month.
Seems to work better on major pairs during London session. Price respects the R1/S1 levels more often than I expected.
Anyone else finding similar results with pivot points or am I just getting lucky with market conditions?
Been using pivot points for 3 years, mainly on EUR/USD and USD/JPY. You’re not getting lucky - they work better on majors because there’s more liquidity.
Here’s what I’ve learned: pivots work best with other confluences. When S1 hits a previous support zone or moving average, that’s where I see the strongest reactions.
You’re right about London session timing. Price respects those levels way more during high volume. Asian session is hit or miss.
Watch out for news days though. Strong fundamentals blow right through pivot levels like they don’t exist.
Pivot points work great for major pairs when London’s open.
Major pairs definitely respect pivot levels better. Add R2/S2 levels for stronger moves.
London session volume makes pivot points way more reliable - that’s when all the big institutional money flows in.
I use daily pivots on EUR/USD and GBP/USD too. Don’t just blindly trade bounces though. Watch how price actually approaches these levels.
Slow grind into S1 or R1? It’ll probably hold. Price rips through fast? It’s likely heading to the next level.
Pivot points saved my ass from some bad trades when I started using them 4 years ago. Don’t force trades at every level - that’s the biggest mistake I see people make.
EUR/USD respects pivots about 70% of the time. GBP/USD is a bit less reliable but still worth watching.
Here’s what really improved my hit rate: I wait for price to test the level twice before entering. First touch is often a fake out. Second touch usually shows you the real direction.
Also - when price opens above the daily pivot, it usually stays bullish most of the session. Works the same way in reverse. Simple filter but it works.
Pivot points are effective on major pairs, largely because institutional traders pay attention to the same levels. While they can indicate areas for profit-taking, relying on them for precise entry points isn’t always effective. I typically use S1 and R1 for exiting trades rather than waiting for reversals. Weekly pivots tend to offer stronger support and resistance, and monthly pivots are invaluable for long-term positions.