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Strategies & Market Trends : Trade What You See, Not What You Think -- Ignore unavailable to you. Want to Upgrade?

To: compradun who wrote (288)	1/19/2001 4:03:10 PM
From: chris-	Respond to of 867

Hi compradun, Not sure if you were asking aldrums or me on pivot points. Here is a description of pivot points as Vadym and I trade: Message 14679182 Any thoughts or questions, we invite them. Have a nice weeekend. Chris

To: compradun who wrote (288)	1/20/2001 12:58:54 AM
From: aldrums	Respond to of 867

comp, See #reply-15213626

To: compradun who wrote (288)	1/20/2001 11:47:36 AM
From: Threei	Respond to of 867

I would like to add some details to pivot points discussion. We use them in two ways. First is discussed in the post referred by Chris and in short can be summed up as: we take position in the direction of penetration. I.e., if yesterday's high was 25 and stock goes to 25 1/8 today we consider it uptrend confirmation and take long position, placing the stop right under supprt level stock has formed during retreat. Second is based on the principle: old resistance becomes new support (old support becomes new resistance). We had a class several days ago on ICIX chart for three days in a row, showing how trending stock acts in this regard. Yesterday we made a play based on this. Take a look at CPTH chart to see how it worked: 1. Stock bounced from 9 to 9 5/8 2. Retreat to 9 3. Approached 9 5/8 and broke it to the upside, forming new high near 10 4. Pulled back to 9 11/16 5. Strong support at 11/16 confirmed assumption that 9 5/8 (old resistance) became new support 6. Trade was initiated on long side at 9 3/4 for break of 10 with stop under 9 5/8 7. Stock went to 10 3/8 - 7/16 where buying became fast signalling sell. Some might consider this gain too small but heck, it was easy to read and safe. This is our kind of plays: easy on nerves, not threatening to destroy the day with big uncontrolled loss, easy to enter and exit. As one of our members said, "relaxing way to trade comparing to hysterical movements". Vadym