One odd feature of the Person's system is that the monthly pivots are calculated by calendar month rather than a trailing 20 trading days. Today's chart, below, shows the pivots for August.
| pps | pps open | upper pivot | lower pivot | |
|---|---|---|---|---|
| EUR/USD US$1.3187 | US$1.2878 jul26 | US$1.3696 | US$1.2459 | |
| USD/JPY¥86.36 | ¥86.78 jul30 | ¥88.41 | ¥83.96 | |
| GBP/USD US$1.5896 | US$1.5258 jul23 | US$1.6278 | US$1.5136 | |
| EUR/JPY ¥113.87 | ¥112.87 jul27 | ¥115.86 | ¥104.43 | |
| USD/CAD C$1.0228 | C$1.0488 jul22 | C$1.0561 | C$0.9987 | |
| USD/MXN Mex$12.5693 | Mex$12.8693 jul22 | Mex$12.9999 | Mex$12.2410 | |
The method I'm using -- monthly pivots on daily charts -- are what John Person recommended in a couple of ThinkOrSwim online seminars earlier this year. I think having these monthly quantum leaps is extremely strange. The aggregate of trades on a currency pair knows nothing of the calendar, and to believe that the first of the month is some sort of magic switch point requires a belief that the markets have intelligence, an impulse I resist at every occasion.
However, I'll continue using Person's pure, unadulterated system awhile longer so as to evaluate its efficacy.
The analysis uses the daily Person's Proprietary Signal, developed by John Person, and the monthly Person's Pivot, which he also developed.
These are black box signals -- the "proprietary" means that Mr. Person knows how they work under the hood, and I don't. But they have shown a fair degree of success in identifying good entry and exit points, and I find them useful.
On the glance, "pps open" means the price at the start of trading in the United States on the day the signal appeared.
Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
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