Trading the Pivots
- Thread starter JimmyJam
- Start date
Hardyards,
I didn't re-enter because the set-up was not ideal the second time round - the signal was only ok.
Looking at the chart right now (August 3/4), even if I did get in a second time, I see that price would have come back and taken out breakeven point and I would have had to make a third entry (which I missed - pre NFP and those pre-news entries are tricky with spread widening). Thats alot of stress... So because I took profits early I actually affect what my downstream trades are going to be like - pushing myself into more situations that I could avoid if I just sit back and hold for a bit (overnight).
My aggregated risk/return on total trades made is decreased as a consequence of taking profits early, although total trades go up.
I see your point of view though in that I took +55 and then I could have kept chasing it for more, easy to say, better to get in and hold on in my experience to date.
Quote from nkhoi:
nice simple system, so I copy it and add on a Donchian Channel for visual stop, we will see how it performs.
Thanks for the compliment.
The concept is based on Steve46's Liner Regression Channel, but instead of drawing lines, I calculate the Pivot and use it as the turning point, paying attention when the Pivots' comparsion to its 3 and 5 day averages are either reversing (signalling a change in trend) or show difference (example: 3 day positive, 5 day negative) signalling a potential change in the previous trend.
I'm still working out the kinks here in the forum (but consistency will come with experience), and with time I hope to show traders who work with the pivots a solid methodology to trade them by (and of course, the best learning is done with attempting to teach others).
Best,
JJ
JJ.....There were some key "market profile" levels in the area from your charts for Friday...........
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5Pillars
Registered: May 2006
Posts: 620
09-02-06 10:15 AM
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Quote from tyler19:
How Do I find the support and resistance zone?
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Study "Market Profile" and you will find some of the most critical s/r levels each day at key volume distribution points. I have never found any s/r levels from any other method that have the rock solid performance of MP levels.....they are quite amazing!
Here were some of Friday's levels............
http://www.charthub.com/images/2006/09/02/ES_317_VB.png
http://www.charthub.com/images/2006...ES_317_VB_2.png
Here off 1311.00 again which only made 1 point with remainder out at b/e after delta shift back to positive.........
http://www.charthub.com/images/2006...ES_317_VB_3.png
Here a MP level as resistance and then a level which was broken through now as support.........amazing how effective they work every day...........
http://www.charthub.com/images/2006...ES_317_VB_4.png
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I find the market profile levels are much more rock solid as "heads up" zones than just regular "pivots".
Hey 5P,
Thanks for the info.
Truth to tell, I gave MP a look, but moved on to systems that "make sense" to me, and I never could get MP to do it.
For instance, are those charts saying there was a potential sale or buy?
I have a theory that if a traders is taking a consistent approach to market in a systemized fashion he/she will do quite well ... and I believe my trades will bear me out.
Thanks again.
P.S. How is your other system coming along? The one that trades 4 contracts on either side of the market ... now if I could put together a baby like that and automate it ... my, my, my!
Later,
JJ
You're actually really on to something here. I believe that what you are referring to is the key to really tapping the profits that the markets have to offer (while taking no more initial risk than a typical intra-day trade).
I find it helps if I journal or diary my trades, keeping track of them over and over again, eventually you will begin to get a really good feel for the markets you trade ... and when this setup comes around again (and it will, they always do) you can maximize your gain.
But the real question is, how can position sizing help you really reap the benefits of these opportunities???
If I can crack that nut ... well.
Best,
JJ
JJ - Everything is working out very good (the ZB system is very strong and that is my prime system right now).
JJ, I never have a market profile chart up during the day. I just know what the key levels are in the morning before I trade....they are easy to determine from a MP chart of the distribution from say the last 30 days (or whatever period of time you want to look at....30 days, 90 days, 1 year, etc).
Looks like you are getting some good "pivot" trades.....keep up the good work!