Trading the Pivots

We all saw what happend yesterday (Mon).

While this method will not give you trading opportunities everyday, it will do is keep you on the right side of the dominant market trend, and get you to see the consistent patterns that the market makes on a weekly basis, taking advantage of them arise.

This will then increase your ability to spot good setups and make modifications to the system as you see fit, making it your own.
 

Attachments

For Tuesday, 8/15/06.

Market Status

Market Trend: Up

1st Resistance: 1281
Median Pivot: 1276
1st Support: 1268

Current Trend: Down
***
Yesterday was a big sell-off.

According to the updated methdology as outlined in this thread (only trading by the Trend as determined by the Median Pivot in relation to its 3 and 5 Day Averages), I'll be looking for a Buy opportunity today.

We'll see what happens as Price Action encouters Support down below.

Best,

Jimmy Jam
 
Hi JJ, one Q - for how long does the price has to stay above/below the DMA line for you to define a change in current trend? And another one - by how many points .50, 2, 5?

Thanks JJ.
 
Quote from JimmyJam:

Hi Gary,

It's very challenging.

Now I have a lot more respect for you and what it takes to run your thread, manage your other investments, and oversee your business!!!! :eek:

Taking care of things around the apartment, getting ready for work, keeping my eye on my own proprietary system and trying to put together a smooth, generic trading system with a positive expectancy and the rules which anyone can trade by is not as easy as it looks.

Believe me, in this case, doing is believing!

Thanks for stopping by, I am fortunate to have some really experienced guys (uh, I'm just assuming :p) on the thread, today's half-run/stumble out-the-gate has given me several ideas for re-tooling and making some modifications in the setups, as well as uploading a number of spreadsheets which will assist traders in managing their trades.

Best,

Jimmy
More...

JJ,
You ought to go back to the beginning of my journal and read the first day. Mine was horrible. On top of that I had 2 busted trades that day (which has only happened once since then). You'll do just fine but it does take a lot of work to keep up. That is why I stopped mine for those 2 weeks. But it is something I really enjoy and I am very proud of my journal. I know you will be proud and glad that you did it everytime you look at it and see it grow. Have a good day today.

Gary
 
I'm going to try to get short at 88.00 with a stop at 92.25.

88.25 is R2 AND last weeks high.

We should at least get a pull back of 2 points from that area.
 
Quote from DonKee:

I'm going to try to get short at 88.00 with a stop at 92.25.

88.25 is R2 AND last weeks high.

We should at least get a pull back of 2 points from that area.
More...

Don,
Do you always use a 2 point target and 4.25 point stop loss?
 
Quote from 4re:

Don,
Do you always use a 2 point target and 4.25 point stop loss?
More...

No, that would be a recipe for disaster. lol

That 4.25 is my maximum stop loss. Once we hit +2.00, my options are:

1) Move stop to break even (always) for a free trade.

2) Bail on all, half, or none of the position.

3) For any of the position that remains, use a stop of 2 ticks above/below the previous 30 minute bar.

IF you're going to give yourself 4 points of movement against your position, you MUST have trades that will give you 2 to 3 times your risk.

One of the biggest problems I see with my trading and others is we sometimes try to minimize our losses rather than maximize our gains, which winds up minimizing our gains and maximizing our losses :(

I'm trying to de-leverage my trading enough, so that I will be skipping item #2 above and just letting the entire position free-roll once the trade is ahead by 2pts (no bailing on any or half).

As you can see from yesterday, that strategy would have given me a profit of over 9 points rather than 1.5. Those days only happen once or twice each month, so it's critical to maximize them.
 
Quote from romik:

Hi JJ, one Q - for how long does the price has to stay above/below the DMA line for you to define a change in current trend? And another one - by how many points .50, 2, 5?

Thanks JJ.
More...

Hey Romik,

Good Question.

I'm using the technique as described in my postings last nite (using the 18 and 40 Simple Moving Averages) to determine where a potential trade may setup.

For example: This morning we have another Gap Up to R1 (boy, this summer trading :eek: ). Despite the likelihood of R1 delivering a buy like yesterday's would appear to be kinda slim, I will be looking for a boy this morning (see chart).

By uploading all of the info, posting the setups, and posting the charts I am essentially enabling anyone who wants to trade the method with the tools they need to do so (following the method as much or as little as they want to).

So, sorry for the confusion (I'm sure there will be as I transition more to a "trade-a-long" type Trading Lab), but I'm not using the old setup, I'm using the 18 and 40 SMA.

Here's a potential BUY setting up right now, and as the market is currently in an Uptrend, I will only be taking Buys today at this Thread.
 

Attachments

Quote from 4re:

JJ,
You ought to go back to the beginning of my journal and read the first day. Mine was horrible. ...
More...

On top of what I said earlier, I also need at least 5 monitors now. :p
 
Quote from DonKee:

No, that would be a recipe for disaster. lol

That 4.25 is my maximum stop loss. Once we hit +2.00, my options are:

1) Move stop to break even (always) for a free trade.

2) Bail on all, half, or none of the position.

3) For any of the position that remains, use a stop of 2 ticks above/below the previous 30 minute bar.

IF you're going to give yourself 4 points of movement against your position, you MUST have trades that will give you 2 to 3 times your risk.

One of the biggest problems I see with my trading and others is we sometimes try to minimize our losses rather than maximize our gains, which winds up minimizing our gains and maximizing our losses :(

I'm trying to de-leverage my trading enough, so that I will be skipping item #2 above and just letting the entire position free-roll once the trade is ahead by 2pts (no bailing on any or half).

As you can see from yesterday, that strategy would have given me a profit of over 9 points rather than 1.5. Those days only happen once or twice each month, so it's critical to maximize them.
More...

I got ya. Just curious...
 
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