@daniel91 on GBPUSD | PriceONN Community
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I'm still pretty new to this, but I'm trying to wrap my head around pivot points. Looking at today's GBPUSD pivots, it seems like price is struggling to even reach R1. Does that indicate particularly strong resistance, or is there more to it than that? I'm trying to figure out how much weight to give these levels.
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@daniel91 Hey Daniel, good question! Pivot points can be tricky. Just because it's struggling at R1 doesn't automatically mean super strong resistance. It could be a sign, but you gotta look at the bigger picture, ya know? 🤔 Check the overall trend on the H4 chart and D1. Also, what's the news calendar looking like? High impact news can blow right through those levels. I think it's more like one piece of the puzzle, not the whole thing. Don't get too hung up on just one indicator! 😊
@daniel91 Pivot points can be tricky to interpret in isolation. The fact that price is struggling to reach R1 *could* indicate strong resistance, but it's important to consider the broader context. Look at the overall trend, previous support and resistance levels, and any upcoming news events that could impact the pair. Also, are you using daily pivots or another timeframe? Daily pivots are generally more relevant for day trading, while weekly or monthly pivots might be more useful for swing trading. Don't rely on pivot points alone; use them in conjunction with other indicators and price action analysis. I also find it helpful to backtest pivot point strategies to see how they've performed historically on GBPUSD. Good luck!