I just want to get some feedback for anyone that has used John Person's pivot point moving overage on the EMini indexes. What's the concept behind this? Is it a viable trading tool?
I have his book and it's a good book, but very simply here's what he says: 1) look for a confluence of daily, weekly, monthly pivot points. 2) Put two sma's on the chart -cant remember if he specifies times or not, but lets just say 10 and 20 3) if price is approaching one of the confluence levels, for example lets say price is declining put is running into daily DS2, WP, MS1. Since we are looking for a buy the 10 should be getting ready to cross the 20. 4) The use of reversal candlestick patterns at these levels. From the previous example, say there is a hammer confirming these support levels, you would most definitively be looking for a buy. 5) I THINK he talks about using an oscillator as confirmation, not entirely sure. Im sure I'm missing some of the finer points as I haven't read it in a while, but thats the gist. Also, if you go to cbot's website and go to the education section, I think there is a free webinar on there. Hope this helps.