daytrading the pivots etc

Discussion in 'Strategy Building' started by SethArb, May 29, 2004.

  1. I am curious how many traders

    are able to trade various markets

    using projected pivots and daily ranges

    based on prior day (s) ranges

    and can consistantly game the market this way

    without falling to problems of discipline

    and overtrading etc
  2. doctoroe


    I use pivots regularly on the NQ and ES as a guide to likely market action but they are only one of several criteria I use to help decide whether to enter a trade. I also use moving averages, stochastics and OBV. I don't trade the NQ or the ES, but they are helpful in monitoring stocks on my watchlist that may move in concert.
    I would be very surprised if anyone uses pivots as their primary criteria for trading.
  3. the opening range and overnight range

    is important too :)
  4. Hi SethArb,

    Someone asked me a similar question recently about using Japanese Candlesticks for such.

    Although I mainly trade ES. I watch other markets just as closely...

    NQ, YM, QQQ, SPY, DIA, Eurex DAX, Forex Eur/Usd and Eur/Yen.

    I would have to agree on what doctoroe said.

    Yet, I do meet and am surprised by a few traders that uses any form of pivot based on prior trading day as their only criteria.

    It's a good academic study but I haven't met anyone that successfully trades via such exclusively.

    I mostly meet traders that uses prior trading day's price info for today's pivots...

    They're using it with something else...something else that's their primary trading tool.

    I myself uses prior trading day's price info based on wide range bodies candlesticks (WRB's) to make pivot points or s/r levels to today's price action.

    I'm not sure if that qualifies as something your talking about.

    If you don't understand what I'm talking about...

    I can prepare a chart example to clarify what I'm saying.

    Unable to do so right now because I don't have access to my other computer right now that contains my charting program.

    It's simple...just drawing horizontal trendlines from the last WRB that appeared in the prior trading day session...

    Trendlines based on the Close and Open of the WRB.

    Then watching today's price action to see if any trade signals (I mainly use divergence) show up at/near the trendlines...

    Divergence is my primary trading tool (trade signal).

    No trade trade.

    If I get a trade signal at/near the WRB pivots (s/r level)...I usually add a few extra contracts.

    If I get a trade signal not anywhere close to a WRB pivot...normal size for the position.

    "Even with the best of maps and instruments, we can never fully chart our journeys."--Gail Pool

  5. for taking time to reply in such detail

    what is WHB ? is it mentioned in Nison books ?

    I know pivot 's ( or variations ) of are used by
    some floor traders as part of their strategy

    maybe not so much by screen traders
  6. Pabst


  7. :confused:
  8. Pabst


  9. :eek:

    :D :D :D
  10. tradARRR


    gotta get that "post count" up there, huh??

    why don't you just start a smilie face forum in chit chat??
    #10     May 31, 2004