Pivot trading - Learners page

monkeybusiness

Well-Known Member
#11
First big thanks for your comments Subhadip bro ,please can you tell me in brief , sorry im not understand what you are telling ,please.
Explained by ST da

In my thread "Ideas on day/swing trading" I have discussed many trading ideas. One of the ideas discussed there is my favorite...I have learnt it from Saint and the credit goes to him. We called it Virtual High/low.

I have done some thinking on this pattern and I find that it is a high success rate pattern with a solid price logic. This pattern is a form of Test pattern.
NF is in downtrend, it takes a rally and makes rally top at A. Then the decline starts and the market goes down. The market gathers strength at the decline bottom and stages another rally and goes to B....now observe carefully. Bar marked B is a bullish candle and it closes in the wick or tail area of bar A....this means that the bulls tried their best to take the market up and break top A but they lost their power and could not push it up any further. This is virtual high and when low of bar B is cracked, it means the market is reversing its direction....so we sell short.

The same pattern happened at the bottom. Look at C and D and there reversal was indicated. This gives a very high RR trade and one can catch the reversal at almost high/low point.
These are reversal patterns so make sure that there is some price move before a reversal is likely and dont try to fit this pattern to every alternate bar...also see to it that A,B are at some distance and not consecutive bars.


Look at A,A' and B and see how at a resistance zone a reversal is indicated. B is closing in the wick/tail of A and A' and triggering virtual high reversal once low of B is cracked.

 

monkeybusiness

Well-Known Member
#15
VP in simplified term:

Minor Pivot High having lower minor pivot highs on both sides (left and Right) will become VPH. Vice versa for VPL.

Please correct me Subhadip Sir if my understanding is wrong.
 

rjshem

Well-Known Member
#16
Explained by ST da

In my thread "Ideas on day/swing trading" I have discussed many trading ideas. One of the ideas discussed there is my favorite...I have learnt it from Saint and the credit goes to him. We called it Virtual High/low.

I have done some thinking on this pattern and I find that it is a high success rate pattern with a solid price logic. This pattern is a form of Test pattern.
NF is in downtrend, it takes a rally and makes rally top at A. Then the decline starts and the market goes down. The market gathers strength at the decline bottom and stages another rally and goes to B....now observe carefully. Bar marked B is a bullish candle and it closes in the wick or tail area of bar A....this means that the bulls tried their best to take the market up and break top A but they lost their power and could not push it up any further. This is virtual high and when low of bar B is cracked, it means the market is reversing its direction....so we sell short.

The same pattern happened at the bottom. Look at C and D and there reversal was indicated. This gives a very high RR trade and one can catch the reversal at almost high/low point.
These are reversal patterns so make sure that there is some price move before a reversal is likely and dont try to fit this pattern to every alternate bar...also see to it that A,B are at some distance and not consecutive bars.


Look at A,A' and B and see how at a resistance zone a reversal is indicated. B is closing in the wick/tail of A and A' and triggering virtual high reversal once low of B is cracked.

Think this setup there in bosch today.also reverse of it in union bank 1 min .
 
#20


if candle 2 opened well abv ( ie abv candle 1 high/wick) then this is virtual high?
Then it won't be a virtual high. It will be a case of breakout rejection if the same bar closes below the bar 1 high....,if after few bars the bar closes below the bar 1 high then it is a breakout failure.

Smart_trade
 

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