Trading the Pivots

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

  1. For Tuesday, 8/29/06.

    Market Status

    Pivot Trend: Bullish

    1st Resistance: 1309
    Median Pivot: 1302
    1st Support: 1296

    Current Trend: Down
    ***
    Market is dropping after yesterday's huge upsurge. The Median Pivot is currently holding support. Let's see if we can get the action off of S1 if it continues dropping through it.
    ***
    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.
     
    #341     Aug 29, 2006
  2. Long @ 1303.5

    Looks like it wants to move off of the Pivot again. Stdying the MA's it would be a Reversal Buy

    Here is the setup.
     
    #342     Aug 29, 2006
  3. your pivot is between R1 and R2?
     
    #343     Aug 29, 2006
  4. Out at 1301.5
     
    #344     Aug 29, 2006
  5. Seemed like you were doing really well following the trend, why did you decide to go against it. I used to do that, and you are more than likely going to get killed. Not saying that it's impossible, but its not a high probablity that it will work.
     
    #345     Aug 29, 2006
  6. Yeah, I agree with you.

    The trend has currently turned back up (as measured by the Pivot Trend indicator).

    The Median Pivot didn't hold, so price action will most likely go down to S1 (1296) and hold, or move back up through the Median Pivot, at which I will go Long again.
     
    #346     Aug 29, 2006
  7. I guess this is what the market what it is. I look at my chart and see a downtrend, but you see an uptrend. Who knows who'll be right, good luck:)
     
    #347     Aug 29, 2006
  8. DonKee

    DonKee

    IF your even going to use an indicator to determine the trend, you must use an indicator that puts you on the correct side of the market for the time frame you are trading.

    I don't know anything about the reliability of the "pivot trend" on a daily basis predicting the intraday trend on my 5 minute chart.

    I do know from watching the charts that JJ originally put up, that trading in the direction of the 18 and 40 sma and when the 18sma is leading has kept me on the correct side of the market.

    There are several "continuation" trades each day even when the ranges have been narrow.

    I'm not that good of a trader, so I try to only trade with the trend in my time frame. That way, if I'm a little off, the trend might eventually bail me out.

    The only trade that I have in my arsenal at this time that totally ignores all of this, is the selling of R2 and the buying of S2 using a 4 point stop and money management as outlined previously. This seems to work because the market is already extended at these points and a 2 point "back-off" is a high probability occurrence from these levels.

    Trading with the trend in the time frame that my signals are generated has helped me to stay out of trouble.
     
    #348     Aug 29, 2006
  9. Ho ho!

    This from a guy who says he's "not that good of a trader".

    I'm not sure of the reliability of the Pivot Trend indicator either, that's why I'm experiementing with it on this thread.

    If it works, hey, I've given traders a tool they can use to determine the overall market trend as measured on a daily basis. Then, at the very least, by using SMA's or EMA's they can determine the market trend and trade with it (if they trade using a 5 minute timeframe), while respecting the pivots.

    Regards,

    JJ
     
    #349     Aug 29, 2006
  10. Hi QQQ.

    Here's what the whole setup looks like using the formula from the spreadsheet on page 22, with today's numbers:

    R3 1322
    R2 1315
    R1 1309
    P 1302 (this is the Median Pivot)
    S1 1296
    S2 1289
    S3 1283
    ***
    Since the Median Pivot did not hold, traders will be looking at 1296 as the next level of support

    Best Regards,

    JJ
     
    #350     Aug 29, 2006