Pivot Trading- a new way of Trading

[Smart_trade]

dada u use vwap method of pratap ji ?

I still have VWAP bands on my chart.Useful for profit booking. It helps to understand the market structure.

Smart_ trade

 

[AK78]

sir so many traders and i also same problem is not stick the method jump 1 system to another system how can we stick with system & money management rules pls some lights

 

[timepass]

I still have VWAP bands on my chart.Useful for profit booking. It helps to understand the market structure.

Smart_ trade

Could you post that chart please ?

 

[jagankris]

sir so many traders and i also same problem is not stick the method jump 1 system to another system how can we stick with system & money management rules pls some lights

In shorter term 5m charts if you are looking for a profitable indicator based continous buy sell mechanical system you will not find one

 

[Satya.]

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

Ok @Smart_trade txn
wht ema/sma can b used on 1tf,if i dnt undrstn VP's?
wht ma wud u recommnd?

 

[Satya.]

I still have VWAP bands on my chart.Useful for profit booking. It helps to understand the market structure.

Smart_ trade

is vwap a price action system?

 

[onequorauser]

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

Hypothetically, if one were scalping, then how would he/she manage the MFE. Profit taking has to be based on targets right? 6-8 points as you rightly said. Would a typical scalper close his trade here or take out most of the positions once he gets this or wait and watch where the market takes him?

 

[Smart_trade]

Hypothetically, if one were scalping, then how would he/she manage the MFE. Profit taking has to be based on targets right? 6-8 points as you rightly said. Would a typical scalper close his trade here or take out most of the positions once he gets this or wait and watch where the market takes him?

Typical scalper does not even wait to get 6-8 points in most trades. Scalping is quick entry and exit within minutes....it waits till the move continues and books out either in profit or closes in loss. It does not wait for the targets,MFE.Scalpers dont wait and watch where the market takes them and the moment market shows a sign of even a temporary halt, scalper books out.

Smart_trade

 

[Smart_trade]

Ok @Smart_trade txn
wht ema/sma can b used on 1tf,if i dnt undrstn VP's?
wht ma wud u recommnd?

Moving Average based systems are different. In this thread we will talk about only pivot system which is not based on MA.
So if one wants to understand the system, he has to brush up things like rally/decline,minor and visual pivots ,minor and visual trends etc. Subhdip has dealt with these basics quite well in the initial pages.

I dont intend explaining the basics. It is my experience that this method most will not understand.My effort is only to point out the wrong ways people trade this system . There is no claim that the system has answers to all trading issues and problems.....no system or person has such answers. We are only trying to address majority of the situations.

There are many systems in the market and one should find a system which is in tune with his mental set up and trade the same..

Smart_trade

 

[Smart_trade]

sir so many traders and i also same problem is not stick the method jump 1 system to another system how can we stick with system & money management rules pls some lights

This issue comes from our unrealistic expectations from a trading system. There is no trading system which will address all the trading issues and when our system encounters few losses, we throw that system aside and go in search of another system .This continues till one understands that there is no holy grail system...all systems will have losing trades, false starts and their share of losses.

Successful traders dont change their system all togather...they may add a few things to make it more efficient but they keep the core system same because they are in tune with that system . And as they say " dont mend it till it is broken".

Smart_trade