I forgotten Jimmy, my nick cataloniafree,it means free for my country(Catalonia,are in midle of Spain and France) but have a very difficult solution. My nick It does not have anything that to see with any cat
heh, i was just shortening your nick because it's easier to write, i can call you CF if you perfer, no disrespect intended. *** I had been keying off of the pivots themselves, but I think they make better targets for ending trades than potential levels for beginning trades. I also think it makes better sense to follow the path of least resistance and sell if price action is below the previous O/C and buy if price action is above the previous O/C and do nothing if price action trades in-between the previous O/C. All good trading is the result of applied effort and work. Let's see how this theory work out. Best, JJ
Early morn'in. R1: 1337 PP: 1332 S1: 1328 *** As I mentioned over the weekend, we're going to be taking a different approach to trading in regards to using Pivot Points. The rules I'll be using are as follows: 1a)If price action is above the Previous Open and Close, that is bullish action and we will look to BUY on a retrace and resumption of that trend; or 2b) You can BUY when the Previous Close is breached, provide it is higher than the Previous Open. 1a)If price action is below the Previous Open and Close, that is bearish action and we will look to SELL on a retrace and resumption of that trend; or 2b) You can SELL when the Previous Close is breached, provide it is lower than the Previous Open. I will also be using the CCI Histogram for these setups. I hope it will be clearer for us to interpret the day's action based investor sentiment as exhibited by Price Action, which is always the best Trend Indicator of all. Enclosed are some charts exhibiting examples of what I mean, by observing them you will see why I came to the conclusions that I have and am taking the Journal in this direction. Best Regards, Jimmy
How you do'in vol. Nah, I'm doing my homework here in preperation for tomorrow's trading. I've been using the Pivots, Support and Resistance to key trades off of, but after looking over (like a hundred charts since Thursday), and running the numbers, I think they function better as well, a Pivot Point, Support levels and Resistance levels, with the relationship of Price Action in refererence to its previous open /close. For example, here are 2 good sells. Notice in all of the charts which are forthcoming, the CCI Histogram is always GREEN for the Buys, always RED for the Sells, and if a profit target of at least 2 pts has not been reached before it changes over the 0 Line, the trade will have to be aborted, and we will have to wait for the next setup.
Now, here's the same setup with 1 buy with a loss and 1 buy with a win. What is stopping price action in the case of the buys and sells? It isn't listed here, but if you run the numbers for yourself, you will see that it is the previously established Support and Resistance levels.
No Trade. Notice the previous establised Open and Close levels were never breached, so no trade was initiated. This method is automatically designed to keep you out of the CHOP.