Trading the Pivots

Quote from LondonUSTrader:

Congrats on an educational thread.

In my view, what you say in the above statement is not good trading advice. ... The amount of money you are up or down is irrelevant. The market doesn't care.
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Thank you for your dissenting opinion.

The logic and reasoning (all of it) still hold, and there are plenty of guys banking that $100 per contract, per trade, who are doing very well for themselves, so the amount of money they are up or down is crucial to their trading (not to mention, paying their bills).
I have just found through my analysis that averaging a 2 pts loss and 4 pt + gain by legging out of contracts in multiple sets will yield positive expectation, make a system very easy to trade, and on a weekly/monthly basis yield a better return.

Still, if something works for you, good luck
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Oh, it's working for me, I'm just here to share in the hopes that it can work for others who want to put in just a little bit of time and effort ... or I could hang out with a great gang over at the S/R Trading thread :D , but I figured my trading would get more out of this endeavor.

The ONLY reason to close any trade is because the current market action tells you to do so. ...
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Could you be a little bit more ambiguous, please? Different traders read price action differently, using a wide array of tools and techniques at their disposal, this is in part, what makes a market. A Buy on one timeframe/method can represent a Sell on another, and even still a small loss can be taken in the process of hedging a larger gain, etc. (Uh, no one is going to disagree with me on that one, I hope?). :confused:

Oh alright, what is the current market action telling you now?

It's telling me that I'm about to get paid.

Best,

Jimmy
 
It's a done deal folks.

While price did challenge my protective stop I wasn't anticipating another UP/DOWN day ... because:

A) We had one yesterday, and, more importantly

B) The objective analysis of the pivots (which is readily available to any and all) shows that the market is turning, and so keeping with the discpline of the system I expected more upside during the afternoon session.

Time to get ready for work
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In regards to when to take profits for your trading ... it just doesn't really matter to me so long as you do it consistently.
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The channel was just that, a channel (the market digesting its gains and getting ready for the next up move).
 

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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.
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I shorted and bailed at break-even 1288/1288.

Reasons:

2756 advancing stocks

Nas is almost twice as strong as the spu's. It is almost always best to be trading in the direction of the Nas, it usually leads.

Trin is at a low .62

While I may be wrong getting out of this at break-even, you must go with the evidence presented before you.

Yes, I will be wrong alot, but I really don't care about being right or wrong. I just care about making money trading.
 
Quote from DonKee:

I shorted and bailed at break-even 1288/1288.

Reasons:

2756 advancing stocks

Nas is almost twice as strong as the spu's. It is almost always best to be trading in the direction of the Nas, it usually leads.

Trin is at a low .62

While I may be wrong getting out of this at break-even, you must go with the evidence presented before you.

Yes, I will be wrong alot, but I really don't care about being right or wrong. I just care about making money trading.
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Hey Don,

You broke-even on a trade that I would consider to be against the trend, so there's something to be said for that. For me, trying to fight the market is like trying to fight someone who outweighs me by 100 pounds and is 10 times the fighter ... I don't want to do it, I would much rather go along with them and be their friend.

I had my eye on the internals and indicies as well, so I figured, along with the change in market trend, that my long position should work.

I just try go with all of the information that I can stack in the favor of my trading position, if all the ducks are lining up in a row as it were my trade should have a favorable outcome.

Do this consistently, and you will make consistent money.

Best Regards,

Jimmy
 
JimmyJam - Thanks for taking the time to write out your pivot journal, it will be interesting. Subscribed.

Regards,
jho
 
Quote from JimmyJam:

Hey Don,

You broke-even on a trade that I would consider to be against the trend, so there's something to be said for that.

The beauty of using the R2 and S2 is that, so often, you are getting into your position AFTER a large move has already taken place. You really aren't risking alot, but you do have a lot of reward.

Compare this to the guys who were buying on an 87.25 break-out. How much upside do they have when the Nas is already up 2.5% vs their downside risk? Quite often, not a lot. This is an unusually strong day today.

Of course, your pull-back trades to the area between the 18 and 40, waiting for CCI confirmation to join the trend are a great way to trade with small amounts of risk and good upside, too.

I thank you for your explanation on those and look forward to learning while watching you.
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For Wednesday, 8/16/06.

Market Status

Market Trend: Up

1st Resistance: 1295
Median Pivot: 1284
1st Support: 1277

Current Trend: Neutral (MA's are Bullish, CCI Histogram is in the Red)
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The market blasted out of the gate yesterday, hitting the Median Pivot and blowing out-the-gate, to sit at R1, consolidate, and slowly move upwards to R2.

In reviewing the Pivot Diary, if you caught that trade you would've made over 20 pts(I didn't, I was up to late putting the finishing touches on the revamped system) and caught the action off of R1 (as posted). That's alright, a win's a win as they say in B-Ball, and tomorrow's another day. I mention it only to show the power of catching moves off the Pivots, and they deliver the goods a lot more than 33% of the time.

It's been a while since S1/S2 was hit and generated a successful trade intra-day (Last Thursday, and it was against the dominant trend, so I would not have taken it using the rules of the thread). I mentioned it yesterday, and I'm still looking to take action if the market drops and Support comes in.

Best Regards,

Jimmy Jam

P.S. I'll keep till the weekend before posting anymore major updates to the system :D .
 
Quote from DonKee:
I thank you for your explanation on those and look forward to learning while watching you. [/B]
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Hey Don,

I really enjoy your observations and participation as well. It was your observations about the success of trades off of R2 that gave me the idea of renewing the Pivot Diary, this way everyone can see how the trades play out and the Pivots generate Support/Resistance trades as it moves from a Bullish, Uptrend Mode to a Bearish, Downtrend Mode over and over again.

... anyone please feel free to let us know your thoughts/comments.

Best,

JJ
 
Wow did you just see that blastoff!

Summer trading ... love this stuff.

For anyone keeping track, here we are at R1 again, think it moves higher from here at the Open?

While it could, I don't think it will, if you get your setup Don, this morning would probably be a good time to "get your SHORT on".

But since the Market Trend is in Bullish Mode (as measured by the Median Pivot against its 3 and 5 Day Averages), I'll have to hold off and look for Buying opportunities.

See you at the Open.

JJ
 
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