pivot trade directions

Discussion in 'Technical Analysis' started by diffused, Nov 5, 2008.

  1. diffused



    To all the pivot traders out there, how do you determine the direction of your next trade when a pivot point is reached?

    just wondering what different trading styles are out there.
  2. Are you referring to swing pivots in price or daily pivots?

    With the daily pivots, I just sell into resistance and buy off of support.
  3. I don't recommend using them for direction, just S/R. Learn to determine trend on your chart, trend lines and channels work pretty good. Look up confluence, a cluster of S/R works even better.
  4. diffused


    sorry i should have been clearer. i meant the daily pivots.

    i'm interested in the mechanics of how people determine a trend or range day.

    i've heard of people using volumes and open gaps for this.

    just curious to learn about the different ideas people have for this
  5. =====================

    Diffused,this clears up some things.
    Well support doesnt mean much [not very useful compared to resistance]- in a bear market.

    Simple stuff, but helpful, workable stuff, like that.

    Trend day simply doesnt make higher highs usually
    doesnt make higher lows, usually
    doesnt make higher closes usually -in a bear market,
    in which we in , meaning we are in a bear market:cool:

    Bull markets trend days do usualy make higher highs........
    ......................................................................Bear rallys do this some ;
    not near as long in %%, or in time, as bull/uptrends......................

    Range or [sideways trend ] simply goes sideways, thus its name;
    your short term , medium term moving averages -go sideways also.:cool:

    Looking @ years of data, helps a lot also.
  6. diffused


    support levels are definitely a favourite it seems. :)

    my set ups are purely for intraday and
    i look for any stock that has moved into the r2-r3/s2-s3 region and fade that move when r3 gets hit.

    its a nice boring low stress trade :p

    i've read people basing their pivot trades purely on the open in respect to a pivot point.

    Also, some people like to watch the TICK meter and see general setiment from there.

    There was even something i saw about using pit noise.

    so, what other random, crazy things do people use. i'm curious :)
  7. I don't usually use pivot points in my trades unless I feel for some reason that the trade needs to be investigated in more detail (i.e. if it might be going against me).

    I use this calculation in an Excel file:

    R2 = P + (H - L) = P + (R1 - S1)
    R1 = (P x 2) - L
    P = (H + L + C) / 3
    S1 = (P x 2) - H
    S2 = P - (H - L) = P - (R1 - S1)

    R's being resistance and S's being support. I also do midpoint calculations on both to add midway levels in case something happens around there, in between the two levels.

    Surprisingly, disregarding huge 900 point moves, the simple calculation is quite accurate.

    Anyone have any opinions or comments on other pivots? Specifically floor, woodie's, camarilla or demark pivot points? Like one over another? Or do you feel one is more responsive than the other?