Pivot Points

[iridium]

OK... and greetings again from Iridium ..I just finished posting a new thread , (by the way... why do we call it thread ?? I looked it up in a dictionary and most of the definition revolves around textile.. however I found one that sort of makes sense.. Thread = also means train of thoughts.. hmm interesting but ..?
Question.. few weeks ago I run into this concept of using pivot points as ala Peter Bain strategy.. what is so unique about it..?

Iridium

[Renshi]

Hello there,

I use pivots on my charts, all the time, they are great for finding the recent support and resistance from the previous time frames. Eg I used a 30 min chart and use daily pivots on there. It will show calculating the high and low and close of the previous days prices where its going to have a proablility to have invisible bounces or a slow down. Some people I know use them for targets or entries when candle formations occur around these areas.

I am moderating on the London Session this friday so if your there feel free to ask about them, after we have found a trade and entered.

I have attached a demo pic of pivots on a chart.

thanks

Renshi (James)

[techtrader10]

Originally Posted by iridium

OK... and greetings again from Iridium ..I just finished posting a new thread , (by the way... why do we call it thread ?? I looked it up in a dictionary and most of the definition revolves around textile.. however I found one that sort of makes sense.. Thread = also means train of thoughts.. hmm interesting but ..?
Question.. few weeks ago I run into this concept of using pivot points as ala Peter Bain strategy.. what is so unique about it..?

Iridium

Pivot points are an excellent tool to have in your toolbox. It was mostly used many years ago by floor traders of places like the Chicago Mercantile Exchange. The traders would figure out the pivot points and mark them on the back of their trading sheets for quick reference for pin-pointing tops and bottoms, S/R, and price range forecasting. It is used by a lot of professionals who subscribe to the old school methods. So if they are using it, it might be of use to you to at least see what they are looking at.

If anyone wants to check out a good book on the subject, then check out "A Complete Guide to Technical Trading Tactics" by John L. Person.

The subtitle to the book is "How to profit using pivot points, candlesticks and other indicators". It's a real good book with lots of charts to look at and it gives excellent insight from an old school floor trader who knows.

I picked up my copy from Amazon.com, cheap and I have used pivot points since.

[Renshi]

Hello Tech Trader,

yes I know the book and its good. I got to read a copy from my local library. I didnt think of these places for loaning out books, (which sometimes are exspensive on book I bought a couple of years ago was $116.00) so if your just starting out and get a hint for a good book to read, try your local library first, they may just have it or be able to get it in for you.

all the Best

Renshi

[techtrader10]

Hello Renshi,

My apologies for taking so long to get back to you. I totally agree with you on that. Always check out a book from the library and if that person likes it then they can go and buy it from a discount house. That way they aren't stuck paying for a useless or unwanted book. I usually buy the used but like new books. It will only get read a few times and sit on the shelf the rest of the time anyway so why buy new.As long as I can read it, it works. Thanks for your input on this.

[sweet_piplady]

Originally Posted by techtrader10

Pivot points are an excellent tool to have in your toolbox. It was mostly used many years ago by floor traders of places like the Chicago Mercantile Exchange. The traders would figure out the pivot points and mark them on the back of their trading sheets for quick reference for pin-pointing tops and bottoms, S/R, and price range forecasting. It is used by a lot of professionals who subscribe to the old school methods. So if they are using it, it might be of use to you to at least see what they are looking at.

Support and Resistance levels are important because they represents a point at which a major price movement is expected to occur.

Pivot points, another useful tool that can be added to any trader's toolbox. It enables anyone to quickly calculate levels that are likely to cause price movement.

Most professional traders use this one..