Fib. Zone Pivots on Nov. 16, 2009

November 16, 2009 · Posted in Pivots · Comments Off on Fib. Zone Pivots on Nov. 16, 2009 

A Trend Trading day. When @ES is over 9 pts up at the open, it is pretty much given that markets may close up strongly. About 70% of the time when @ES and @YM trading up (6 pts for @ES or 50 pts for @YM) pre-market, they close strongly up. The probability factor rises even higher after the first hour if they continue to trade up. So, the question is how far high they move up or move down on trend days? This is where Fib. Zone Pivots are helpful.

Fib. Zone Pivots shows trading extremes of any trading instrument for each trading day. They are used as key guidelines for support/resistance in my trading. They can be applied to any instruments.

Fib. Zone Pivots are computed using yesterday’s range. 50, 62, 100, 138, 162 % of yesterday’s range is added for today’s Pivot (for Resistance) and subtracted from today’s pivot (for Support) to compute the Fib. Zone Pivots.

About 10am, @ES traded near Fib. Zone Bands (138-162) and traded in that zone most of the day. Around 3pm, the breakdown below the Fib. Zone Band (138 level at 1108) resulted a trade up tp FZ100 level (1103). ES stayed mostly upside and Meredith Whitney didn’t scare the serious traders.


1. Fib. Zone Pivots

Mid Pivots Trade

November 9, 2009 · Posted in Pivots · 1 Comment 

When ranges between key resistance or support levels is wide/large,
the mid-point pivots may be used for potential Trades.

Here CMI 5m is Short from 11.10am. Was waiting for a potential
trade setup.

MidR2R3 is at 1084.25. Placed an order to sell at 1084.

Trade: Short
Short: 1084
STOP: 1086.5
Target: 1080-81


Yearly Pivot Support

November 1, 2009 · Posted in Market Structures, Pivots · Comments Off on Yearly Pivot Support 

ES sold off hard on Friday. ES failed to continue its upside momentum from previous day. About 11am ET, ES started showing the signs of sell-off when price traded below the Globex Low around 1056 level. Repeated lower-lows confirmed further downside momentum.

Many ABC Bearish setups/trades were triggered Friday. Around 2.30pm, I started noticing the Yearly Pivot (1029.50) as the key support level and may be respected. 3.05pm was the first time @ES tested its Yearly Pivot (YPP, 1029.5) and rallied to 1038. Not a big trend reversal, but this YPP levels can be traded for scalp for counter-trend trades. Second time @ES tested Yearly Pivot again around 4pm. Very few times, I have seen @ES traded near Yearly Pivot Levels. Usually yearly Pivot levels are well respected for a quick scalp.

In Trending markets, Market Structures (MSH/MSLs) are great sources for confirming the reversals.

MSH/MSLs pinpoint key reversal points when they are reversing from:
1. Outside the Fib. Bands
2. Bouncing off Key Pivot Levels/Price Profile Levels.


Fib. Bands
Floor Trading Pivots
Market Structures