Stocks & Commodities V. 25:8 (53): Q&A by Don Bright
Product Description
Q&A by Don Bright
ON PIVOT POINTS AND DAYTRADING
Is there any relationship between pivot points and daytrading? I believe there is, but I do not know what it is. Could you give me some help?—robinxing
We use the pivot points of the futures in our entry/exit decisions during the day in this way: We consider the trading troughs between pivot and R1 or S1, S1 and S2, and so on, to be “mini” support/resistance levels. (We use resistance levels 1, 2, 3, and 4, and support levels 1, 2, 3, and 4.) They tend to be a self-fulfilling prophecy, since the large futures traders on the floor (and off) tend to stall at these levels.
We don’t necessarily use the individual stock pivot points; we merely consider the overall market trading range or level along with other indicators.
ON PIVOT POINTS AND DAYTRADING
Is there any relationship between pivot points and daytrading? I believe there is, but I do not know what it is. Could you give me some help?—robinxing
We use the pivot points of the futures in our entry/exit decisions during the day in this way: We consider the trading troughs between pivot and R1 or S1, S1 and S2, and so on, to be “mini” support/resistance levels. (We use resistance levels 1, 2, 3, and 4, and support levels 1, 2, 3, and 4.) They tend to be a self-fulfilling prophecy, since the large futures traders on the floor (and off) tend to stall at these levels.
We don’t necessarily use the individual stock pivot points; we merely consider the overall market trading range or level along with other indicators.
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