Thoughts on Day/Swing Trading

[KID_of_MARKET]

The heading of the chart is " Looking For Pivot When Holding Long Positions ". It means we are looking for pivot lows which will qualify for reversal from long to short. There is a difference between the pivots and pivots which qualify for reversals.

For qualifying for Pivot Low for reversal , we need a new high on or after the bar making a pivot low. With this critaria point 4d is not a pivot for reversal.....it satisfies the critaria in 4 e and hence becomes a pivot for reversal.

5 e is a pivot for reversal on the above critaria.....

But if you take a plain pivot defination 4 d is a pivot low when the next bar after pivot low goes above high of the pivot bar....but not a pivot low for reversal as explained above.

Hope the difference is clear.....

Smart_trade

Thanks for the nice explanation

Is point 2 formed pivot ? (plain or pivot for revarsal ?)(as left bar and right bar has not taken high of the pivot bar ) (and/or right bar has not formed new high ?)

And point 5e still be pivot as any left side bars from pivot bar has not taken high of the pivot bar?

 

[DanPickUp]

Quit a tricky thing this pivots , isn't it?

Is it possible for you also to show the other side in the same way: When holding short positions?

It is nice to see them at glance.

Tc

DanPickUp

 

[balasoft80]

Hi ST,
Could you please elaborate the pivots and pivots which qualifies for reversal with help of charts? I couldn't able to grasp it. Thanks a lot.

Thanks
Bala

 

[Smart_trade]

Thanks for the nice explanation

Is point 2 formed pivot ? (plain or pivot for revarsal ?)(as left bar and right bar has not taken high of the pivot bar ) (and/or right bar has not formed new high ?)

And point 5e still be pivot as any left side bars from pivot bar has not taken high of the pivot bar?

1) Point 2 is a pivot because in the pivot bar itself we made a new high.....( see the defination ...we need a new high on or after the pivot low bar )

2) 5 e is a pivot because the last bar has made a new high.

In a few cases here I see that it is important to know when the new high was made in the pivot bar but whether the new high was printed first or the pivot low was printed first....that will decide whether it is a pivot or not. So we need to know how the highs and lows of the pivot bars are made....Cases in 2,5C,5D are such cases....this is so when the high and low are printed on the same bar......

Smart_trade

 

[Smart_trade]

To understand which pivots are reversal pivots and which are not, we need to understand the trend in the current timeframe, when does the trend change, trends of one lower and one higher degree. It is a subject which will need a very detailed study ...we may take up this subject at some future time.....

Smart_trade

 

[DanPickUp]

its gci mt4 ......software ...dear friend why u hidden the software name ..using by the microsoft picture viewer

Do you ask me?

If so, the picture was made with "picpic" screen shot software, which is for free, and this screen shot then was opened with MicrPicVie.

After that I used "easy Whiteboard" software, which is also for free, to paint on the picture.

The trading software I used, when taking the screen shot was the Firetip platform, which is, as far as I know, not available in India.

Editing:

When I say not available in India I mean: I did not hear of any broker in India which offers this platform. It is offered from different brokers in the Unites States and the main server is Farr Financial.

The Firetip platform is a simple platform with easy to use tools. It offers option and future data, so you can trade both.

 

[KID_of_MARKET]

I was back testing your method on crude oil hourly and faced some doubts

I had taken longs at marked with blue line and stop was red line after last long taken.

If I trade only with pivots ( no candle stick patterns and other indicator) my stop should be red line.

I am confused as to, is first arrow marked candle a pivot or not ? (as second arrow marked candle has not taken high of that candle and shied from just two points)

Also second yellow marked has formed lower pivot high, hence up trend is finished temporary, so no meaning to continue in long trade.

How to handle this situation without any candlestick patten or indicator i.e. with only pivots ?

 

[Smart_trade]

I was back testing your method on crude oil hourly and faced some doubts

I had taken longs at marked with blue line and stop was red line after last long taken.

If I trade only with pivots ( no candle stick patterns and other indicator) my stop should be red line.

I am confused as to, is first arrow marked candle a pivot or not ? (as second arrow marked candle has not taken high of that candle and shied from just two points)

Also second yellow marked has formed lower pivot high, hence up trend is finished temporary, so no meaning to continue in long trade.

How to handle this situation without any candlestick patten or indicator i.e. with only pivots ?

The yellow arrow on the left side is not a pivot as the all the bars after that are inside the bar within the bar which made the low. Even if we break the high of the bar which made the low subsequently, it is not a reversal pivot low as no new high is made....

Then the question is where do we say that the uptrend is reversed to downtrend ?At 2nd yellow arrow we only know that the lower high is made.But the scenario of sideways move or a bull flag is still open. Bull flag possibility is open even when the low marked by 1st yellow arrow is cracked

But when we make a pivot below the level of last high ( the level marked by a topmost blue line in your chart ) and that becomes a reversal pivot even if we dont make a new high. So when the pivots below the topmost blue line is cracked...we definately know that the downtrend has started and we go short .

The long positions one may book below the three sideways candles we see at the top...but the trend change and short trade when the pivot low formed below the blue line is cracked.......and then we ride the down move.

I have not dealt with this so far in this thread or it is not discussed anywhere in this forum still.....but I hope it does not add to the confusion...

Smart_trade

 

[DanPickUp]

http://thepatternsite.com/pennants.html

 

[Dev Mookerji]

http://thepatternsite.com/pennants.html

Dear sir,

I am dead against the patterns's now.

I have seen many of yours posts and an admirer of you.

But You may not be having Idea, that I used to post some of my tips here in traderji based on patterns much before ur joing the forum here. may be those threads had been deleted...........

At present I have stopped following things :---

(a) Advisory services (Since 2008)

(2) Managing others portfolios (since 2009)

(3) Discontinued my websites (since 2007)

(4) Stopped teaching students about TA (since 2007).


You may be thinking that why I m writing all these f'''''n things here...????

becoz I dont believe in patterns........people used to predict some market movements based on patterns are just a flase one..........



@Analystsssssss used to predict patterns ..just to hide their actual systems@


.....Its my experience..........


But i am sure........(I may not be wrong here.)

Dev Mookerji
Trading for a living