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.

YearlyPivot_Oct3009

Fib. Bands
Floor Trading Pivots
Market Structures