Trading the Pivots
- Thread starter JimmyJam
- Start date
For Thursday, 8/31/06.
Market Status
Pivot Trend: Bullish
1st Resistance: 1308
Median Pivot: 1306
1st Support: 1303
Current Trend: Down (1:54am ET)
***
Well, that was a snoozer!
Price Action is sitting a little below the Median Pivot, hard to call, but the Pivot Trend is currently in Bullish mode, if we get an early drop it could rebound and seek higher-highs, otherwise I would anticipate an early rise would be sold off (profit taking).
See you at the open.
Best Regards,
Jimmy Jam
Market Status
Pivot Trend: Bullish
1st Resistance: 1308
Median Pivot: 1306
1st Support: 1303
Current Trend: Down (1:54am ET)
***
Well, that was a snoozer!
Price Action is sitting a little below the Median Pivot, hard to call, but the Pivot Trend is currently in Bullish mode, if we get an early drop it could rebound and seek higher-highs, otherwise I would anticipate an early rise would be sold off (profit taking).
See you at the open.
Best Regards,
Jimmy Jam
Quote me as much as you want. Always happy to help.
Even though I wrote that a long time ago and had forgotten I wrote it, it still applies today. I have never found a way of consistently scaling in on ES daytrades. Doesn't mean it can't be done.
On a side note, I don't think it is realistic to make money everyday in the ES. Sometimes you just have to survive to live and fight another day, especially when there are very tight ranges.
Yesterdays action reminded me of something I meant to throw into the mix.
Sometimes (often) the pivots (I'm including S1/R1 etc here) are 'respected'. What I mean is price moves 'crisply' from them if they hold and it is quickly rejected. Likewise if there is a retest it is fairly crisp too.
Same thing if the line breaks, price moves through with a thrust and either re-tests or does not. Either case the line is doing its job and acting as S/R or at least clearly failing.
Yesterdays action (in the DAX at least) was more chaotic with price consolidating around the pivot. This in itself gives a handle on whats going on, though it will probably take a bit of chopping about before it becomes clear. (took me too long to recognise yesterday) I guess those who use indicators will see them flatten. "The locals picking each others pockets" if you will.
Anyways I'm not sure if you have considered tings quite from this angle but i think its valid.
Cheers,
Nick.
Sometimes (often) the pivots (I'm including S1/R1 etc here) are 'respected'. What I mean is price moves 'crisply' from them if they hold and it is quickly rejected. Likewise if there is a retest it is fairly crisp too.
Same thing if the line breaks, price moves through with a thrust and either re-tests or does not. Either case the line is doing its job and acting as S/R or at least clearly failing.
Yesterdays action (in the DAX at least) was more chaotic with price consolidating around the pivot. This in itself gives a handle on whats going on, though it will probably take a bit of chopping about before it becomes clear. (took me too long to recognise yesterday) I guess those who use indicators will see them flatten. "The locals picking each others pockets" if you will.
Anyways I'm not sure if you have considered tings quite from this angle but i think its valid.
Cheers,
Nick.
I only trade the ES. But, do you find the pivots work as well on the European indices like the Dax and FTSE as they do with the US indices? Is there a difference between the European session before the US open?
I have often wondered how well the pivots work on other markets I don't trade, but I have never tested them as 5-6 hours of trading is enough for me.
Never Tried the FTSE but they seem to be pretty OK on the DAX. Having said that I guess its not the lines that matter its how you monitor whats going on at the line.
Of course you do get the normal shenanigans that you get around any well known level.
Personally I think there is some inherent sense in how the pivot and r1 s1 are calculated. They have some rational thinking behind them. Again my opinion only, but I think they "work" pretty much on any chart any time frame. Of course it depends what you expect from them and consequently what you do that counts, but whats new there
Cheers,
Nick
Of course you do get the normal shenanigans that you get around any well known level.
Personally I think there is some inherent sense in how the pivot and r1 s1 are calculated. They have some rational thinking behind them. Again my opinion only, but I think they "work" pretty much on any chart any time frame. Of course it depends what you expect from them and consequently what you do that counts, but whats new there
Cheers,
Nick
Quote from LondonUSTrader:
I have often wondered how well the pivots work on other markets I don't trade, but I have never tested them as 5-6 hours of trading is enough for me.
They work fine on the eur/usd. Todays interest rate announcement was a classic. European open price bounced of S1 (which was sitting just above weekly pivot), moved to PP, quickly went to R1, zig-zagged around R1 for a bit then shot up to R2, bounced of it once, came back up bounced of it a second time - BOOM...........and an hour later was back down to S1 threatening weekly pivot - what a ride!! The space between each level is about a quarter of the daily range. At each level price action and cci patterns revealed the next move..