Question by guardiangel: What Trading session to use when calculating pivots in Forex markets?
i trade and know how to calculate pivots but i am kinda new to forex. i was just wondering what inputs for pivot calculation to use? London session, tokyo or US? is there a specific time frame that everyone uses? do i use US market times to calculate the pivots if i trade in the US session and tokyo session pivots to trade tokyo time? does every trading session use different pivots?
Answer by Himanshu J
As you have mentioned that you are new to Forex Trading, the first thing I would like tosay that please don’t depend only on Pivot points or any single technical analysis. In Trading we need to first have an overview of Fundamentals (like a canvas on which we paint a picture for longer term) to Technical analysis for shorter term.
Forex Trading, unlike stock (share) trading, is not bound by national exchanges and hence is open 24 hours globally. Because of this simple fact traders end up in calculating pivot points for different time zones. London being the center of Forex trading (because it overlaps all time zones), makes people think that GMT 00:00 is the right thing to calculate pivot points but I completely disagree. A trader waking up in New York may calculate it for his/her previous day and not for London’s waking ours and that may work.
We at http://www.ForexAbode.com/ would initially put our results for US session but are planning to do it all the sessions soon.
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