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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (1195)	1/7/2001 10:38:53 PM
From: bobby is sleepless in seattle	Read Replies (2) \| Respond to of 5732

Pivot points... for the short run, let me borrow jenna's chart once more. marketgems.com Exactly Ally, areas of support/resistance, the greater the congestion, the stronger the pivot. Pivots IMO, defines triggers for entry utilizing many of the shared components of support/resistance trading, just a slightly differet label. IBD's O'Neil suggests these areas as buy signals if I remember correctly from one of his books. Going with GLW example, confirmation (preferably on closing basis) of the "pivot" or congestion area above 57 would trigger a buy signal. There are intermediary lines drawn below and depending on the congestion, could also provide buy points. For intraday purposes, it's amazing how more often than not, muscle memory is triggered at these intermediary lines as well, maybe for a qucik scalp. Under these circumstances i tend to utilize points of pivot from the most recent trading days, maybe back 10 trading days to identify congestion, but focusing more on the current to 2-3 days of trading history. Let me add further...my connotation. I tend to call pivot points areas of transition. Let's utilize GLW's 57. What if failure to cross 57, maybe a return move of that area fails as well. Would this not provide a short opportunity? Probably so. Otoh, if GLW has confirmed trading above 57, maybe best to go long? Probably so, both answers from a general standpoint. More of a neutral stance to include both potential areas for short and long opportunity, given the current trend, market behavior, volume action... This self fulfilling prophecy TA traders seem to be involved with, or maybe call it mucsle memory, becomes evident as we approach support/resistance areas (and clearly identifiable the greater the congestion). This makes for potentially a more conservative entry if played off pivot. Which way to enter as short or long? Again, depends on cross currents, the individual trader, and the development of one's "force", that is, the innate experience. I'd be glad to utilize other examples...earlier, regn was mentioned and I suggested 30 as an area of transition, or "pivot"...