Trading the Pivots
- Thread starter JimmyJam
- Start date
Hey Don,
Good question. Here, I'll explain.
Reversal Trades are taken with the 18 Simple Moving Average (SMA) on the opposite side of the 40 Simple Moving Average (SMA) from the direction of the trade that you want to take.
They are trades where you try to literally "catch the reversal move from the current trend".
Continuation Trades are taken with the 18 Simple Moving Average on the same side of the 40 Simple Moving Average (SMA) of the direction of the trade that you want to take.
They are trade where you try to "catch the pullback and continuation of the current trend".
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Notice the position of the Simple Moving Averages in the Short trade you took yesterday (the 18 SMA was above the 40 SMA, so it was a Reversal Short).
Notice I do not use the Displaced Moving Average (DMA) when trading this methodology. Also, the direction that the Simple Moving Averages (SMAs) are poinging in is not relevant to the trade in this methodology ...
... by the time the SMAs are pointing in the right direction the trade will have moved past you.
OK.
Market held at S1, generated a Reversal Trade Long and Pivot Trend is Bullish so I took it.
Now attempting to breach P (median Pivot Point).
Option 1) If this trade holds we could likely make it back up to R1 or even R2.
Option 2) If it doesn't hold we could drop down to S2.
Option 3) The market could also base while trying to find its value area, in which case we go nowhere (but that ususally only happens - after the market has a Wide Range day - and no Pivot, Support or Resistance levels are hit in the process.
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Thanks for your questions Don.
Anyone else feel free to chime in.
JJ
Market held at S1, generated a Reversal Trade Long and Pivot Trend is Bullish so I took it.
Now attempting to breach P (median Pivot Point).
Option 1) If this trade holds we could likely make it back up to R1 or even R2.
Option 2) If it doesn't hold we could drop down to S2.
Option 3) The market could also base while trying to find its value area, in which case we go nowhere (but that ususally only happens - after the market has a Wide Range day - and no Pivot, Support or Resistance levels are hit in the process.
***
Thanks for your questions Don.
Anyone else feel free to chime in.
JJ
The signals that I'm using are generated on a 5 min, but as you know, the longer the time frame, the better the signal, so actually I think trading off of a 10 min might be better ... and while 15 min would be even more more better
it might not generate a signal everday.Good question, thanks.
OK, it's a slow, kinda boring Friday, the trade wen to completion, I've got profit on the 1st set and am holding the 2nd set until MOC.
I'll upload some stats and some general information regarding the system (and the folks who inspired me to put it together) this weekend.
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Feel free to post your charts showing your setups, what you think are good/bad trades, and why (as mentioned previously, NQ actually trades better than the ES, and I would be interested in seeing the performance of anyone who trades the YM as well).
Best,
Jimmy
Week in Review
I'll make this a quick snapshot, and may increase it as time moves on and the necessity arises.
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The week started off Bullish, with the Pivot Trend Indicator calling for a potential turn in the market, and it never looked back. While I have seen the market trade off of R1 and make new highs when the market is turning upwards after a downsurge, I've never seen it do it 3 days in a row! I guess there's something new for everyone to learn.
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I've enclosed a copy of the Pivot Diary, listing the Systems Performance and my results based on the calls that I've made on this thread.
For this week, the system averaged around 21 pts for the week.
Which is pretty much what my independent analysis shows is possible week-in/week-out, month after month.
2 pts per day.
Me?
Based on my calls I only made 16 pts for the week (refused to take a Buy, looking for a retracement). So it seems that the more that I consistently trade the System, most likely the better my performance will be.
Best Regard,
Jimmy Jam
I'll make this a quick snapshot, and may increase it as time moves on and the necessity arises.
***
The week started off Bullish, with the Pivot Trend Indicator calling for a potential turn in the market, and it never looked back. While I have seen the market trade off of R1 and make new highs when the market is turning upwards after a downsurge, I've never seen it do it 3 days in a row! I guess there's something new for everyone to learn.
***
I've enclosed a copy of the Pivot Diary, listing the Systems Performance and my results based on the calls that I've made on this thread.
For this week, the system averaged around 21 pts for the week.
Which is pretty much what my independent analysis shows is possible week-in/week-out, month after month.
2 pts per day.
Me?
Based on my calls I only made 16 pts for the week (refused to take a Buy, looking for a retracement). So it seems that the more that I consistently trade the System, most likely the better my performance will be.
Best Regard,
Jimmy Jam