Quote from Justins62490:
Pivot points:
If a stock breaks a pivot point and then turns around right after and come back over the pivot point to buy. Then it should continue in that direction and then sell as it reaches the next pivot point above. To me that sounds like trying to catch a falling knife with only the hopes that it will reverse due to support from the pivot point.
I have checked stocks to see if this would work, and honestly, they seem completely unaffected by pivot points.
There are those who only take what is read and then only backtest as it was written and find it fails miserably. That is what generally happens with any method written in books. You have to think outside the bun, and this takes years of study and backtesting.
I been trading over 30 years, and most of them are catching the falling knife, but depending on the instrument, and they all have different personalities, and one has to take into account the recent price action of when to catch and when to step aside.
Read just the basics of Elliott wave, the biggest move is the 3rd wave, so where you want to catch the knife is the corrective phase of the 2nd wave, completion of wave One was the trend change, then wave Two is the pullback where I will get in, then wave Three will be a profitable Price movement, this swing offers the least risk and greatest profit. Of course, not every trade is this perfect, that is why stops need to be in place.
Only need 1-2 ways to enter, then 40 plus ways for money management, to include reasons of not taking a valid signal, ie too much volatility, or corrective wave happened too far off the lows, or end of wave One happened in a too few of bars from the low.
