Using Pivots

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Well Ozzy, I think I did "explain". In my previous post, I indicate that the "DDF line" is something I picked up from Dr. John Clayburg and Jon Lukeman. The line is simply a convention. You draw a line through the middle of the opening 5 min bar. In theory you would want to be long above and short below.

I hope this helps.

Lefty
 
My bad. I didn't read your previous post before my post.

Anyways here's some info I just found on the subject.


Quote from Lefty62151:

Well Ozzy, I think I did "explain". In my previous post, I indicate that the "DDF line" is something I picked up from Dr. John Clayburg and Jon Lukeman. The line is simply a convention. You draw a line through the middle of the opening 5 min bar. In theory you would want to be long above and short below.

I hope this helps.

Lefty
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Thanks Ozzy, I appreciate that. What I want people to understand is that these "conventions" are only useful to the extent that others use them. I "know" that other professionals use floor pivots. I also "know" that many professionals modify standard floor pivots for thier own use. The reason I "know" this is that I used to transmit the modified pivot data to floor traders. I am sorry that I can't get into the specifics but I will say that they are still in common use.

Another point that is important relates to how pivots are used. What one has to do, is to observe how price acts as it approaches a pivot. If you look at my charts (any charts with pivots actually) you will see that price exhibits "momentum" by showing us wide range bars when it "takes out" the pivot line. This is similar to someone trying to jump over a fence. You "take a run" at it, then you jump. Wide range bars indicate momentum.
 
Looks like I'll have to do some detective work. I'm always interested in knowing what other people are looking at. Thanks for the laying out the crumbs.

:)

ozzy

Quote from Lefty62151:

Thanks Ozzy, I appreciate that. What I want people to understand is that these "conventions" are only useful to the extent that others use them. I "know" that other professionals use floor pivots. I also "know" that many professionals modify standard floor pivots for thier own use. The reason I "know" this is that I used to transmit the modified pivot data to floor traders. I am sorry that I can't get into the specifics but I will say that they are still in common use.

Another point that is important relates to how pivots are used. What one has to do, is to observe how price acts as it approaches a pivot. If you look at my charts (any charts with pivots actually) you will see that price exhibits "momentum" by showing us wide range bars when it "takes out" the pivot line. This is similar to someone trying to jump over a fence. You "take a run" at it, then you jump. Wide range bars indicate momentum.
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Ozzy, as I have said before, it took me years to find my own edge. I notice no one else is stepping up to offer theirs. I am glad to point a finger in what I believe to be the right direction. I'm a very average person. I know if I can do it, so can you. Also, as I hope to show people, there are several ways to get to the same place.

Good luck
Lefty.
 
I understand. I have no problems finding information myself. I actually like performing this task independantly (its more fun/challenging).

cheerio

ozzy


Quote from Lefty62151:

Ozzy, as I have said before, it took me years to find my own edge. I notice no one else is stepping up to offer theirs. I am glad to point a finger in what I believe to be the right direction. I'm a very average person. I know if I can do it, so can you.

Good luck
Lefty.
More...
 
hey LEFTY

if I was using SQUAWK BOX would the commentator have said something like

huge paper at the bid in SEP futures
on the lows ( 1200 )? other than
having a good contact on the floor
how would you have known this ?
 
Surely you know better than that.

We all have our contacts. They help us. We help them. They become our friends.

I don't subscribe to a squawk. Waste of money.

Lefty
 
I thought I would post a chart of the OEX. I refer to the cash indices all the time. Institutions are always looking at the cash. Hedgers and speculators are always following the cash markets.

While I use it primarily to confirm trend on a longer time frame, it is useful for a number of reasons.

Here we have a chart using 5 min bars, and I have put in my "Modified Pivots" as well as "Standard Pivots".

Lefty
 

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