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
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
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