Trading the Pivots

Quote from DonKee:

I guess I'm not familiar enough with the pivot trend as an indicator to know if it really has any predictive value for my short term, intraday trading.

So far, I don't see it, but I've only been aware of it as long as this forum is old (not long) :)

I'll watch and learn.

Thanks
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It's like this:

In an uptrend you can:

a) Buy Dips
b) Buy breakouts of consolidation areas
c) Buy breakout of previously established highs

In a downtrend you can:

a) Sell rallies
b) Sell breakdowns of consolidation areas
c) Sell breakdowns of previously established lows

You can use any tool you want to determine the dominant trend of the current market, I'm just using the Pivot Trend Indicator (and it's currently Bearish, ie, downtrend to be expected until securties become "oversold" again, etc.).

Best Regards,

Jimmy
 
Quote from johnpinochet:

JimmyJam,

I'm new to your journal. I'm looking to branch out from the 30 year and 10 year Bond futures, hence my keen interest in your method. In addition, it also is very similar to one of the methods I use in the bonds, minus the pivots but with my own numbers.

How did you apply the AMA Binary Wave indicator to your charting application? Is the indicator published in one of his books? I'm a java / python programmer and I have a ton of trading software so applying it shouldn't be too much of a problem if I can get my hands on the inputs.

Regards,

John
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I found it in Medved Quotetracker (the software I use for trading). You can google it and find out more about it. It's a fairly common indicator and available from a number of charting packages.

It's just a tool I use to determine how price is reacting to the Pivots. The PSAR can be used to similar effect.

Best,

JJ
 
For Thursday, 09/07/06

Market Status

Pivot Trend: Bearish

1st Resistance: 1313
Median Pivot: 1309
1st Support: 1303

Current Trend: Up
***
Thursday was pretty good, I like where things are going now, let's see where they end up.

The market is pushing up to R1, while it might make it past, I double it'll stay up there all day.

See you at the open.

Best Regards,

Jimmy Jam
 
Jimmy Jam,

Thanks for the info. By the way, how do you like Medved QuoteTracker? I'm happy with Ensign, but looking for something else. Am I reading the prices right? It seems pretty inexpensive.

John
 
Quote from johnpinochet:

Jimmy Jam,

Thanks for the info. By the way, how do you like Medved QuoteTracker? I'm happy with Ensign, but looking for something else. Am I reading the prices right? It seems pretty inexpensive.

John
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Cheap and good, along with IQ Feed, a great inexpensive setup for trading, intra-day or otherwise, the only shortcoming is that you only get 10 days worth of data on an intra-day basis, but hey, just save your screen shots :D .

JJ
 
Quote from JimmyJam:

It's like this:

In an uptrend you can:

a) Buy Dips
b) Buy breakouts of consolidation areas
c) Buy breakout of previously established highs

In a downtrend you can:

a) Sell rallies
b) Sell breakdowns of consolidation areas
c) Sell breakdowns of previously established lows

You can use any tool you want to determine the dominant trend of the current market, I'm just using the Pivot Trend Indicator (and it's currently Bearish, ie, downtrend to be expected until securties become "oversold" again, etc.).

Best Regards,

Jimmy
More...

I understand that you're setting up a filter based upon what you perceive as the daily trend of the market.

The question for intraday trading using 3 to 5 minute charts to enter and exit:

Is there any value in trading 3-5 minute bars in the direction of the daily trend? I have yet to see it.

I do see value in trading 3-5 minute bars in the direction of the next few higher time frames (ie:15min or 30 min).

I have found that when using very short time frames, you actually may be trading against the short term trend by using a daily filter. One of the possibilities for this is that the markets spend about 75% of their time going nowhere.

For example: If the market has had 3 up days in a row, your daily trend may be pointing up, but the market may spend the next 2-3 days correcting that upmove. During that time, you will be trading against the very short term trend IF your filter is a daily trend.

Just wanted to throw this out there as it may give you some ideas on developing a filter that is more reliable for the time frame in which you are trading.
 
Wasn't what I was planing at 3am last nite, but I'm short at 1308.50.

edit: support keeps trying to come in strong as heck, but I'll hold the position for now (didn't get a valid signal to close it).

regards,
jj
 

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Quote from JimmyJam:

Wasn't what I was planing at 3am last nite, but I'm short at 1308.50.
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Just a little tip coming from someone who trades nights,
There is a high probabilty that the direction will reverse right at 3 a.m. est. I trade this phenomenon quite often.
 
Quote from DonKee:

I understand that you're setting up a filter based upon what you perceive as the daily trend of the market.

The question for intraday trading using 3 to 5 minute charts to enter and exit:

Is there any value in trading 3-5 minute bars in the direction of the daily trend? I have yet to see it.

I do see value in trading 3-5 minute bars in the direction of the next few higher time frames (ie:15min or 30 min).

I have found that when using very short time frames, you actually may be trading against the short term trend by using a daily filter. One of the possibilities for this is that the markets spend about 75% of their time going nowhere.

For example: If the market has had 3 up days in a row, your daily trend may be pointing up, but the market may spend the next 2-3 days correcting that upmove. During that time, you will be trading against the very short term trend IF your filter is a daily trend.

Just wanted to throw this out there as it may give you some ideas on developing a filter that is more reliable for the time frame in which you are trading.
More...

IMHO I agree with you 100%, and I actually spent this morning working on a method for filtering trades for the thread (I already have a pretty good filters for my proprietary systems).

jj
 
Quote from JimmyJam:

Wasn't what I was planing at 3am last nite, but I'm short at 1308.50.

edit: support keeps trying to come in strong as heck, but I'll hold the position for now (didn't get a valid signal to close it).

regards,
jj
More...

trade close at -1 pt, I'll let the big boys fight it out on this one.
 
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