Trading the Pivots

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

  1. There will be a change in how we initiate trades.

    Keeping in line with keeping the model as simple as possible we'll move from using the CCI 50 Histogram ("CCI50H") and Simple Moving Averages("SMA") to using a basic Inverse Fisher Transform ("IVT") (it's a smoothed RSI).

    http://www.ensignsoftware.com/tips/tradingtips52.htm

    The use the SMA/50CCIH method requires trending price action, and while it is possible to show trending price action in the ES (try looking at 1 or 2 minute bars), for the purposes of this method, I only want to enter 1 or 2 trades a day, not mulitple trades.

    Using the IVT I will be looking to buy crossovers of the 20 line when the Pivot Trend is Bullish, crossovers of the 80 line with the Pivot Trend is Bearish and looking to trade in the opposite direction as the previous trend when the Pivot Trend goes to Neutral.

    Best Regards,

    Jimmy Jam
     
    #321     Aug 26, 2006
  2. romik

    romik

    here are a couple of charts that would be self-explanatory to S/R traders. That 240 bearish doji might provide enough information + info on attached charts of where the market is likely to be heading short term, downside looks more favourable @<1294.00, otherwise upside break of 1302.00 IMHO.
     
    #322     Aug 26, 2006
  3. romik

    romik

     
    #323     Aug 26, 2006
  4. For Monday, 8/28/06.

    Market Status

    Pivot Trend: Neutral

    1st Resistance: 1301
    Median Pivot: 1298
    1st Support: 1294

    Current Trend: Down
    ***
    If that was a market downturn, it sure wasn't much of one.

    The Pivot Trend is moving from Berish to Neutral, so making my decisions based on that info (and the current market trend), I would anticpate an early drop to S1 (or lower) being met with more buying, at which point we will look to go Long.
    ***
    Best Regards,

    JJ

    P.S. FOR ANYONE WHO WANTS A COPY OF THE BASIC EXCEL MODEL AND WRITTEN INSTRUCTIONS, PLEASE DOWNLOAD THEM FROM PAGE 22 OF THE THREAD. [/B][/QUOTE]
     
    #324     Aug 26, 2006
  5. Thanks for the info romik.

    But until I can develop an automated method for programming S/R Levels and trading them using Else/If/Then statements and subroutines, I'll continue using the exercise of making the decisions for this thread using the Pivots and Pivot Trend model, not chart patterns.

    Regards,

    Jimmy Jam
     
    #325     Aug 26, 2006
  6. OK, S1 was never hit, since the market wants to try the highs again, I'll be looking to get Short based on the Price Action at R1 - 1301.
     
    #326     Aug 28, 2006
  7. DonKee

    DonKee

    I guess I was looking at your system differently.

    I bought on the break above the 18 and 40 at 1298.50.

    This break was, also, above the PP and the CCI 14 popped above zero.

    I bailed on half at 1300.50, half of the half at 1301 (R1) and will trail the final quarter below the last 30 min bar.
     
    • buy.jpg
      File size:
      79 KB
      Views:
      96
    #327     Aug 28, 2006
  8. No, that's a good trade.

    I was looking for the early move down to ge the extended upwards movement.

    It didn't happen, so I think this market is going to Sell.
     
    #328     Aug 28, 2006
  9. Note DonKee, I'm moving to a Reversal System rather than a Continuation Trade System.

    Price Action Responds to the Pivots, I want to be able to catch those moves as they happen.

    Sold at 1302.75

    see new setup below.
     
    #329     Aug 28, 2006
  10. 4re

    4re

    JJ,
    Just a friendly reminder to be careful of direction bias.

    Good trading to you,
    Gary
     
    #330     Aug 28, 2006