Pivot Trading- a new way of Trading

[Smart_trade]

After observing how most traders trade the pivot method, I will be posting one post on every weekend to point out most common mistakes traders do when trading this method. I will be posting just 1 chart on every Saturday/Sunday.

This week's chart is taken from a pm I received from a trader. Most traders think that in pivot method we short every minor pivot low and go long on every pivot high. This is wrong. The direction of the trade is decided by visual and minor trends based on minor and visual pivots. In an uptrend we dont short. the sequence is Long,,,,book profit.....again long ...book profit. Also dont take actions on tiny pivots let there be a properly visible pivot. Every share needs some space to move and it makes small tiny pivots and if we act on these,and that too going short in an uptrend ,then it is an invitation to whipsaw.

Smart_trade

 

[travi]

After observing how most traders trade the pivot method, I will be posting one post on every weekend to point out most common mistakes traders do when trading this method. I will be posting just 1 chart on every Saturday/Sunday.

This week's chart is taken from a pm I received from a trader. Most trader think that in pivot method we short every minor pivot low and go long on every pivot high. This is wrong. The direction of the trade is decided by visual and minor trends based on minor and visual pivots. In an uptrend we dont short. the sequence is Long,,,,book profit.....again long ...book profit. Also dont take actions on tiny pivots let there be a properly visible pivot. Every share needs some space to move and it makes small tiny pivots and if we act on these,and that too going short in an uptrend ,then it is an invitation to whipsaw.

Smart_trade

great ST sir, very valuable contribution
Weekend mein aaram bhi zaroori hai

 

[Smart_trade]

great ST sir, very valuable contribution
Weekend mein aaram bhi zaroori hai

Yes, that is why only 1 chart and post on every weekend. If traders can eliminate common mistakes, that will improve their performance on the system. Marking the chart,writing a post,answering questions take time committment but I will certainly spend that much time on weekends.

Smart_trade

 

[vivektrader]

After observing how most traders trade the pivot method, I will be posting one post on every weekend to point out most common mistakes traders do when trading this method. I will be posting just 1 chart on every Saturday/Sunday.

This week's chart is taken from a pm I received from a trader. Most traders think that in pivot method we short every minor pivot low and go long on every pivot high. This is wrong. The direction of the trade is decided by visual and minor trends based on minor and visual pivots. In an uptrend we dont short. the sequence is Long,,,,book profit.....again long ...book profit. Also dont take actions on tiny pivots let there be a properly visible pivot. Every share needs some space to move and it makes small tiny pivots and if we act on these,and that too going short in an uptrend ,then it is an invitation to whipsaw.

Smart_trade

Will be keenly waiting for your posts, it's like homecoming for me, as this very thread was the one where my TJ journey started, and this system is very close to my heart.
Looking forward to learn and contribute.
Thanks a lot.
Vivek

 

[iwillwin]

ST da gyan ki ganga behne dijiyega....
Your words are like light at the end of tunnel...
Hope for struggling traders !!
Lot of hard work has gone in each and every quote you post here....

 

[travi]

Bhai, my 2 cents. This is a very great thread and a great technique.

I can understand if one is marking this on any Index Fut bcos many traders are compelled to only trade the indices and mark small moves.

The entire range from May 29-1 jun is within the VPH/VPL marked on may 29 itself.
Look at the chart period from May23-May29.

Do you see a difference?

if your just learning, its ok, but nevertheless this does injustice to this system. You can have a pool of stocks and scan them.

HH-HL (or LL-LH) applies to higher TF also, then it is respected in lower TF otherwise you will be whipsawed.

All traders make money in trending mkt, its the intelligent who preserve in sideways... the rest just give it back.

Can you please elaborate this point? Are you saying that May 29th is the only vph and others should not have been marked as that?
The first one marked as vph on the left does have its subsequent mpls' taken out and similarly for others too

Just read ST sirs post above, he explained it well.
The marking being correct or not wasn't my moot point.
Right or wrong can be slightly relative in this context.
For a scalper, shorting break of every mpl will be his goal and it may most likely work in uptrend.

Secondly, when trader is forced to trade in single scrip, he is compelled to do that.
Manufacture trades when they don't exist.
Although this is a less known fact bcos pros trade everything, many retail intra traders have these limitations.

That is why I started with my 2 cents.

The greater goal is to increase the edge and be in a trade as long as possible.

If that has to be achieved, then one has to look at greater TF and confirm if its trending or sideways.
If its sideways, give that scrip a pass and look for another one.

If there is a VPH/VPL within a previous vph/vpl one needs to analyze chart structure.
Having right ERL is equally important bcos it works like a TSL, too tight and you loose potential, too loose and you give back more.

Going against greater trend isn't wise until chart structure takes out key areas, it may work but only in hindsight you'll know if you traded a pullback or reversal.

Stay tuned with this thread and more will be explained by ST sir & Subhadip Da.

From Tapatalk

 

[rjshem]

Can you please elaborate this point? Are you saying that May 29th is the only vph and others should not have been marked as that?
The first one marked as vph on the left does have its subsequent mpls' taken out and similarly for others too
View attachment 25769

If ur going by just 5 min timeframe then nothing wrong with ur markings as not everything is inside one vph vpl .but if u see from higher timeframe it may be sideways so ravi also right in his way .both r right in ur ways and reasonsing.one needs to go as per his understandings and comfort someone who wants to keep it simple may just go by one timeframe other may want to go by confirming from higher timeframe nothing wrong with both just different perspective.i would still lean a bit more towards travi as i also prefer high probable setups .

 

[Satya.]

can v trd pivot on 1tf @Smart_trade @rjshem

 

[Smart_trade]

can v trd pivot on 1tf @Smart_trade @rjshem

Yes one can trade pivots on 1 min timeframe.But anything less than 3 min is more like scalping .With 1 min timeframe you will make 6-8 points in NF but considering brokerage,STT and other costs one has to decide whether it is worth it.

One can take entry on 1 min pivots with tight stoploss provided the trade is set up on 3 or 5 min ,but once the trade moves in favour,then come out of 1 min mindset and manage the trade as a day trade and not as a scalp.This will help getting a small stop entry in a trend but your profits will be like a daytrader.

The above will need good practice on the system ,so that it becomes your second nature and we don’t think in the heat of the market ,and screen time....not an easy thing to do .

Smart_ trade

 

[AK78]

dada u use vwap method of pratap ji ?