Pivot Points and market/stocks

[mikevru 10]

Can anyone explain how one can determine Pivot points in a market index or a stock? Jesse Livermore used these but I fail to understand how one realizes one is upon a Pivot Point as soon as it is reached (one can easily see them much after the fact on any chart).

 

Can one look at nasdaq to determine if there have been any recent Pivot Point indicators? Again, how does one actually determine (when it is happening) that a Pivot Point has been realized?

 

thanks,

Mike

[keymoo 10]

I use pivot points every day in my trading. To learn more about them I recommend John Carter's book Mastering The Trade and also search out John Person's work on pivots. I usually fade the first move to a pivot of the day, and thereafter look to see what price does at other pivot points. On ranging days, I usually fade them and on trending days I will sell/buy a retracement back to the pivot. Most charting packages have pivot point indicators built in, or you can calculate your own before the trading day from Emini Day Trading or with a calculator or a spreadsheet.

[MrPaul 10]

Can anyone explain how one can determine Pivot points in a market index or a stock? Jesse Livermore used these but I fail to understand how one realizes one is upon a Pivot Point as soon as it is reached (one can easily see them much after the fact on any chart).

 

Can one look at nasdaq to determine if there have been any recent Pivot Point indicators? Again, how does one actually determine (when it is happening) that a Pivot Point has been realized?

 

thanks,

Mike

 

Mike,

 

Here are some links to look over:

 

Pivot Points - What are Pivot Points and Support/Resistance Levels?

 

Pivot Strategies: A Handy Tool

 

Pivot Point Trading Tutorial

 

I have uploaded A scanned article from stocks and commodities magazine on pivot points alongside the links. Also don't forgot to check out Soultrader's video's on pivots in the video section.

Pivots.pdf

[mikevru 10]

Appreciate your posts guys!

 

Mike

[Nick1984 10]

I've been using pivots in my stock trading so far and its been working well. Just one question for you other traders out there as long as we're on the subject. How much credence do you give to the midpoint between pivots? I.e If price is moving towards R1 from the PP and touches the midpoint, does this trigger any signals for yourselves?

[trader273 10]

You are a little confused. Livermore didnt use pivot points, he was not a chartist. He used something that he called a pivot, but it is totally different than pivot point analysis.

[Soultrader 12]

I've been using pivots in my stock trading so far and its been working well. Just one question for you other traders out there as long as we're on the subject. How much credence do you give to the midpoint between pivots? I.e If price is moving towards R1 from the PP and touches the midpoint, does this trigger any signals for yourselves?

 

Traders use pivots differently but I personally do not use midpoints. I see no signficance in them. The ONLY midpoint I MAY watch is the midpoiint between PP and S1 and PP and R1 only when the distance is great.