Trading the Pivots

Quote from JimmyJam:

OK, just remember, the dominant trend is up (observation, Pivot Trend, Higher Highs, etc.).

In a situation like this there's no way a short-term retail trader can make a call against the market and expect the win without using indepent, object criteria which may signal a change in that trend.

For this I like to use the TRIN, it's hit above 1.05, but it hasn't stayed there, and now it's at 0.96, so until the market shows that it's done with the uptrend, I think it's safer to "sit on the hands" if you want to trade against the trend.

Best,

JJ
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I understand what you are saying, but as we watch these pivot points over the next few months, I think you'll be amazed at how "strong" the market looks at an R1/S1 R2/S2 level and turns around for a 5-10 point move.

Money management is the key on the "fading the trend" signals at the R1,R2,S1 and S2 levels.

Yes, you might lose the entire 4 points, once in awhile. Most often you will be able to bring your stop down to break-even. The big pay-off'sre these reversals for 5-10 points.

It would not suprise me at all, if my entry point was still a good trade today. Moving the stop to break-even after 2 points and following down with a 2 tick stop above the previous 30 minute bar.
 
Quote from DonKee:

It would not suprise me at all, if my entry point was still a good trade today ...
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We're coming up on the afternoon session, you can always reshort, provided the position meets your criteria for a good trade.

I just philosophically like a process of consistent med/small wins, with an occasional home run, and standing aside when I'm not sure of what's happening.

JJ
 
Quote from JimmyJam:

We're coming up on the afternoon session, you can always reshort, provided the position meets your criteria for a good trade.

I just philosophically like a process of consistent med/small wins, with an occasional home run, and standing aside when I'm not sure of what's happening.

JJ
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JJ,

I agree with you. I, too, like a process of consistent med/small wins. I appreciate the sharing of your approach.

I hope you don't mind my sharing a pure pivot point trading strategy mixed in with money management.
 
Quote from DonKee:

I hope you don't mind my sharing a pure pivot point trading strategy mixed in with money management.
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No, I don't mind at all ... it's just that I've gotten my @$$ handed to me when I was first starting out trying to enter positions agains the trend ... and I don't mind people knowing it if it will keep them from making the same mistakes.

Which is why I'm kinda dogmatic about trading with the trend, and it's important for me to be able to define trend for myself, and thus enter positions with it in the hopes of making successful trades.

But I welcome difference (especially when they have your skills and experience), just want to make sure the newfolk can tell the difference between the two styles of trading.
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Quote from DonKee:

3:00p

Continuation sell IF CCI goes below zero?????

Just trying to see if I'm reading this correctly, thanks.
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Nope, Reversal agains the Trend (see chart)
a) It's a reversal because the SMA 18 is above the SMA 40.
b) It's against the trend because the Pivot Trend is currently Bullish (overbought, but still bullish).


Well, it's off to work now. We might some more retracement and then a life tomorrow, but with this market, who knows?
 

Attachments

One more thing.

I'll be posting an updated set of guidelines by which to trade the system this weekend, so everyone will have a better idea of what I am talking about.

Best,

Jimmy Jam
 
For Friday, 8/18/06.

Market Status

Market Trend: Up

1st Resistance: 1305
Median Pivot: 1300
1st Support: 1296

Current Trend: Short
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Quote from JimmyJam:

One more thing.

I'll be posting an updated set of guidelines by which to trade the system this weekend, so everyone will have a better idea of what I am talking about.

Best,

Jimmy Jam
More...

It would be interesting if you also posted actual results as well so we can see how you are doing.

E.g Monday 14th August +3

Week ending 18th August: +5

By the way, I think the best approach is to take small/medium wins and then sometimes a larger win. Consistency, in all market conditions, is what it is about. It doesn't take many points net per month on average to make a lot of money as you increase your contract size.
 
Market is marking an early drop down to Support ... not unexpected. We'll look to see where it holds and (hopefully) generates a Buy Signal.
 
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