• Joe Urban posted an update 11 months, 3 weeks ago

    NIck was asking for clarification on the PIvot rules Here is the best summary I can come up with. Please feel free to comment if I got something wrong. I drew the pivots on a piece of paper and posted it on the wall with arrows showing the various entries and exits. Their are three typical entries and Exits. Sell Enter at m3, target m1. . sell Enter at CPP target at s2. Or if it is and Inside day=range bound market, sell R1 to S1 (this is one of the two counter trend trades). Selling much below the CPP is risky = too expinsive! Selling above M3 is risk= you are probably in an uptrend. Buying is the opposite, Buy m2 target m4. Buy Cpp target R2., Buy S1 if it is and inside day = range bound target r1 (this is the other direction of the first counter trend trade. Buying below the m2 is risky, you are probably in a down trend. Buying much above the cpp is risky = too expensive. ) The other counter trend trade is IF the r2 or s2 target is hit early in the week or month, Then you could consider a counter trend trade, BUT this is higher risk. Lastly pivots can not be used alone. You must combine your bias and other good technical data to determine market reversals and direction. (moving avg’s, stochastics, fibonaccis, support resistance areas, pattern breakouts, channels, news events, market opening and closings ect. ) The pivots are entry and exit targets we can watch and plan to use, but we have to look at the whole picture to determine when to exit and enter, using pivots as a strong guide. It is also important to note that the law of take profit at R2 and S2 does not mean let the market go against you if it never gets there. Ok, if nothing else this helped me think it all out. I hope it helped you also. -Joe