Trading the Pivots

Discussion in 'Journals' started by JimmyJam, Aug 13, 2006.

  1. Okay

    I start by looking at the weekly chart.

    Attached you can see what I look at.

    I just want to see if there is an apparent "big" picture trend

    If I can see one I put in my own channel lines, like the ones you see there.

    I have an LRC in place. You can see the midline (orange) showing a downtrend (big picture). For those that don't have a background in this. Price is contained in the channel and seems to move back and forth between the channel lines.
     
    #191     Aug 22, 2006
  2. Then I look at the daily chart.

    Again I am framing the action. I want to get an idea of now price is trending on a daily basis

    Also I want to see if there are consolidations from previous day's action that form support or resistance. If I see areas like this I make note of them

    On this chart you can see my channel lines in place from the weekly chart (blue lines) and at the end you can see the smaller LRC that I have to frame the recent action.

    As you can see we have had a recent uptrending market on the daily time frame and price is near the midline of the LRC
     
    #192     Aug 22, 2006
  3. and here is the 60 min chart

    I use this to look for entry

    Here is the basic chart with no adds
     
    #193     Aug 22, 2006
  4. and here is that same chart with the Monthly pivots in place

    NOW you can start to see something of value..See how price has failed a couple times at the monthly R1?
     
    #194     Aug 22, 2006
  5. and here on that same chart I have added the weekly pivot

    So my question is "are we going to touch that weekly pivot?"

    If you put a cursor with crosshairs on that chart and scan left you will see support right at 1295 (over to the right)

    More recently you will see a gap up. That gap also acts as (temporary) support.
     
    #195     Aug 22, 2006
  6. romik

    romik

    of course yes would be my answer
     
    #196     Aug 22, 2006
  7. Same chart (60) min with addition of daily pivots

    I have notated the position of the daily pivot

    and you can see how price fell through that pivot earlier in the day

    Pretty clear failure short trade at least as of now.
     
    #197     Aug 22, 2006
  8. Its easier to see if we remove all the colored lines
     
    #198     Aug 22, 2006
  9. longtex

    longtex

    That's what your lines looked like to me (pit time)...

    While I agree that full Globex trading doesn't (yet) seem to have much impact, there seems to be a significance (at times) from the activity accompanying the bond opening that shows up beginning at 0720... case in point, 8/18, where it ran along 1300-1301 most of the night, down to 1299 at 0400, ran along 1299 until bond opening, then from 1299 to 1304 from 0720 to 0830, after which it plummeted to 1297 around 0930. With the close on 8/17 at that 1301 mark, a short as it came down through 1301 around 0845 looked good, and was.

    Again, last night it ran from yesterday's close at 1302 to 1305 at midnight, ran along 1304 until 0400, then dropped to 1299 by 0720, then up to 1302 and back to 1299 at 0830. Based on a TF for Globex, my pivot was 1302 with A1 (your R1) of 1306 and B1 (your S1) of 1298, so I traded long when it popped through 1302. After a stopout for +1.75 at 1101, I stayed out for the Lunch chaos. I normally use the Lunch hi/lo for a post 1300 entry, which today is +1298.00 / - 1304.50... but I'll be waiting for a re-visit to 129800 before entering, since it is the inside support at B1.

    Thanks for the info.
     
    #199     Aug 22, 2006
  10. Okay

    I think that is "it" in a nutshell

    I am outa here. I appreciate you letting me post this.

    I hope it helps.

    All you have to do is have a context for your decision making and develop some simple rules to trade by.


    Steve
     
    #200     Aug 22, 2006