Trading with Pivot
When I do short term trading on index futures, I like to keep my trading window fairly clean. In my personal view more indicators you overlay more comfusing things get. Afterall, all indicators are derivative, and by definition they are slower than price.
I typically use the following indicators in additional to price and volume :
- 10- and a 50-EMA (Exponential Moving Average),
- A VWAP (Volume weighted average price)
- A standard (14,3,3) stochastic oscillator (I don't really use it for anything)
- A Conventional Pivot
And that's about it. I mostly use the EMA and the VWAP to see the price bias. If the price is trading above VWAP, there is a rally going on. If the price is trading below VWAP, the market is on a downtrend. This is a generalization, but for a quick glance, it gets the job done. I turn them on and off to see the bigger picture first, like the chart above. I have turned off the VWAP and Pivots, to see the nice a bit more clearly. Looks like from the 7th to the 12th of October, there is a nice rally that went on on this 15-min chart. Price is well behaved above the 50 EMA = nice uptrend.
Then from the 13th onward it is going sideways. This sets up the stage for a quick trade for me today. This is where I use pivots a lot.
Pivots and its Usage in Daytrading
There are many different types of pivots (yeah, technical analysts are crazy!) I only use the conventional one. I am old school at that. Pivot price for today is simply the average of High, Low and Close price from previous day.
Pivot Point (P) = (High + Low + Close)/3
Support 1 (S1) = (P x 2) - High
Support 2 (S2) = P - (High - Low)
Resistance 1 (R1) = (P x 2) - Low
Resistance 2 (R2) = P + (High - Low)
Once you get the Pivot (P) you can get two support levels S1 & S2 below the P; and to resistance levels R1 & R2 above the P. There can be more, like S3, S4 & R3, R4 and so on. But I never really use them.
Important to understand, like anything is TA, there tools are not full proof. No one gurantees that price will find support at S1 or will get resistance at R1. They might, and they do if enough people looks at them and place orders there accordingly.
On big uptrending days, it is common to have price trade above R2. On Big downtrending days, it is common to have price trade below S2. On average days, especially when R2-S2 range narrows, price usually trades between them.
On days like this, like today, price will likely trade between S2-R2 (see this is a prediction!). We are having long daily ranges these days. So S2-R2 range is 89 points today, and S1-R1 range is 44 points today (I am rounding). These are still huge ranges! As a day trader, you want these ranges to be big.
I like to keep my day trade profit targets between 10 to 20 points. This is very basic principle, and depart from it too on a case of case basis. However, this is baseline. So on a 25 point day, it is very hard to make 20 points out of 25. Why? Because you have to catch the top or bottom or both precisely, which is very hard to do day after day.
But on a 40 point day, it is easier to catch 20 points. On a 80 point day, it is even easier to catch 20 points. May be you can get multiple 20 points on days like that. Get it?
So, this morning I entered a long position at 3510 for /ESZ20, which is basically at pivot. I am a bit tied up today and writing this post. So I thought I will do a quick in and out. I see resistance at 15-min chart at slightly above 3520, and this is well below R1. So my thought process was 3520 should be an easy target. It only took me 30 min to get it...
That's about it... onwards.. :)
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
Charts are created in Tradingview.com, which is a free service.
Posted Using LeoFinance Beta
Dada, how do you get the pivot in cryptocurrency? There's no close as the market is on 24/7. Do we just take the average of the 24h high and low?
There is always a 'close' :) Without a close a candlestick can't form. So for 24 hr markets it is the price at 24:00 UTC
Look closely at the BTC daily chart. There is no gap. Close Price = Open Price :)
Shame on you for flagging @crpytopie. He has a life threatening illness and depends on this platform to fund his medications. I hope you're proud of yourself.
And yet he didn't withdraw a single cent because he has been supported by the Philippine government or maybe other NGOs here in the Philippines. He has more bitcoin in his wallet address than the rest of the Filipinos and he didn't do anything about it because his medications were all funded.
He has been spamming the chain and doesn't even engage in the Philippine community. He was tolerated for a long time even if people have been talking about his abuses. He was left alone. We let him be.
Because of his greed, he accused the main man of the Leo community just because of his "loss" of 500 LEO coins. Now, still a shame to flag him?
Imagine lying in bed all day, unable to do anything but look up at a computer screen. Imagine depending on someone else to take a shit or piss. Imagine that the only thing you can do is stare at a computer in front of you and post on social media.
Now imagine that some people with a lot of stake got triggered by your comments, and decided to take that one little thing away from you. Have some compassion dude. Let him spam. Let him make comments or accusation or whatever. At the end of the day, you can stand up and walk outside. Why kick a defenseless puppy because it growls at you.
To be honest, we let him be. I didn't bother him for years. I didn't mind. When his name pops out in a conversation, I would always ask who's willing to downvote his spam posts. No one dared for years.
He was tolerated. But not being able to do anything doesn't give you a free pass to be a prick. It doesn't give you the freedom to be greedy. It doesn't hurt to interact to people in your community. There are more people who have been less fortunate than him, but they are a source of inspiration. He can be a source of inspiration, but he chose to be greedy instead. If all he can do is stare at the internet all day, he could have at least make it a pleasant experience for him. Whatever happened to him now is beyond me. It's on him.
He could sincerely apologise and make amends. Instead, he played the victim card and said he was bullied. Besides, accusing someone without basis is a serious matter, regardless of your physical capacity. The fact that he's capable of posting means his mental faculties remained intact and fully functional.
This, most people ignored his milking spam for years cause he had the ultimate anti-downvote excuse but to also on top of it all push it and be an accusing prick? Yeah nah, fuck that.
I get what you guys are saying and I may even be inclined to say 'fair enough' if anyone were actually making any real money from this project. Most of us have lost a lot (95% of my initial investment in my case) and are here because we believe in the future of Hive.
The truth of the matter is, Cryptopie isn't really making bank by spamming posts. He's just bored. In fact, if I put myself in his shoes, it's probably what I'd be doing all day as well while I stare at the ceiling. All I am asking is have a bit of sympathy. I don't really know what he did to piss everyone off (something about accusing Leo of hacking themselves), but in the end, who cares. Doesn't hurt anyone. We have been burned so many times on this platform, it isn't surprising that people are suspicious.
I say let him have his couple of bucks each day in rewards. It isn't making a dent in the reward pool.
@nuthman. I appreciate you coming here and talk about this. I didn't answer first because your comment was unrelated to the post about trading S&P 500 futures. I think you will agree on that.
Thank you @ybanezkim26 and @acidyo to chime in.
Rick, I don't think you are fully aware on how abuse of the reward pool works on hive. I am sure you are an wonderful human being with lot of empathy. Believe me I understand your point of view.
I deal with reward pool abuse all day. Believe me nobody has given me this job and I don't get paid for it either other than people calling me names all the time :) I don't mind. I request if you have time to spare (which you don't) please look into how the reward pool is being abused from time-to-time. Then come back and talk to me in person. Better yet; make a post about it. Tag me, and I will go there and have a friendly discussion with you. Cheers man!
Here's my honest opinion, if he's that bored and constantly in front of hive, write something that fucking matters. How is he not tired of the endless sympathy posts feeling sorry for himself? How does he think anyone in their right mind is going to care to daily read about the same things over and over. It's not like he hasn't had time to learn about literally anything else and write about that, connect with other people interested in that and i don't know, enjoy the fucking platform every once in a while instead of only engaging on people with stake to try and get some autovotes/votes back.
People were letting him make a couple bucks each day, that's what I mean, most were ignoring him because of his illness. He's also cross-posting onto literally all chains so he's making more than you might think he is. Point is I have it under good authority that he's just greedy, doesn't really need the money and seems to chase the thrill of getting free donations/rewards. Look at his comments on Steem mentioning to someone how much his fucking fruit budget is. At this point I'm honestly wondering if someone in his life is pushing him to continue down this path even if he doesn't want to, cause I find it really fucking hard to believe that someone just continues the sympathy route for 4+ years without taking some time to actually learn something new or wanting to sway away from making that the center of his existence while at the same time providing no real value to the platform. Matter of a fact is he's not that stupid, he knows what he's doing, he just doesn't seem to realize that over time that will be his undoing that he doesn't take the extra effort to actually provide some valued content but instead go for the easy 5x per day blogging about what medicines he intakes and how he feels at that time.
I'm really not trying to be rude but it wouldn't be the worst thing if he'd use this as a wake up call and not instantly go for the "oh no I'm getting bullied bohoo" to again get sympathy votes from stakeholders on other chains. What a fucking joke of a person.
lol