Sep 24, 2007

Rise or Fall revealed

I like to think of my daytrading system/style as a work of art. It's never really 'finished' and there's always room for improvement. With this being said... I have really enjoyed adding intraday pivot points to my charts recently as they're another good sign of support and resistance. I pretty much use the 38.2 and 61.8% levels as support and resistance and now when I see a pivot point forming in these areas I pay special attention. So, bottomline... you'll be seeing pivot point lines in my charts from now on. That brings me this week's Rise or Fall trade (or non-trade). I came across NXY in my weekly review and thought to myself "Why the f*%$ did I not enter this trade????". I might've been in other trades at the time and managing those, but this was a gem that slipped by (because it was in my watchlist that day). So on the chart I posted I intentionally didn't add the pivot point lines so you can see that - once added - it can really change how I interpret a potential trade.
Okay... the trade:

  • On the 10-min chart below you'll notice price closed right on the S1 line
  • The entry bar was also an inside, NRB with a volume spike from the previous bar. This tells me that this is a potential breakout area
  • Entry bar was also smack up against the 5ema and, frankly, this was either going to shoot up or down
  • I also really like when the pivot line is very close to my normal entry area (in this case, the 61.8% fib. level)
  • Price dropped very quickly after the entry bar and the primary target price was the fib. ext (with an eye on S2)
  • I probably would've taken a partial on a break of the hammer that formed at the 11:50 bar and would have definitely been out once price tagged S2

To add pivot point lines in Quotetracker, just right click on the chart, click on 'Select indicator' and then scroll down the top left menu bar till you get to Pivot Points and add.


bl said...

oonr7, is the S2 line(and all the other pivot points) black box generated by ESig(or...)or is this based on what you are seeing and clicking in?

OONR7 said...

it's automatically generated in Quotetracker. See the end of the post for details on how to add it.

Flatwallet said...

Rise or Fall never fails to impress me. I hope you never stop posting them.

Tom T. said...

oonr7 - thanks for the quotetracker tip re: privot points. Can you tell me what is a pivot point and why/how they work?

Also, this is for you or others who reads these comments - does anyone run quotetracker on a mac using VM software like parallels, bootcamp or Fusion? I was wondering how it performed with this sofware interface, for a mac - thanks.

OONR7 said...

fw: thanks for the great comment. I really enjoy posting them and reading the feedback in the comments section.

tom t: I'm no expert on pivots, but I do know that a pivot point is a level where a stock can change direction. Pivot points along with resistance and support levels on an intraday basis (like what I had on the chart) are calculated by the previous days open, high, low and close (viewed from the daily chart). I found a nice article explaining pivots and how/why they're used on this page:

They also have a link to an online pivot point calculator in case your platform can't do it automatically. And... if your platform can't do it automatically you should really looking into Quotetracker.

Anonymous said...

john l. person has written about pivot points. he may have a website.


Anonymous said...

Love your color scheme. No matter how much I try to tweek the customize color I just can't get it. How do you do it?

OONR7 said...

anon: are you talking about the charts or the blog?

Anonymous said...

Sorry, the charts. The gold gradient is cleaner looking than the teal I am currently using.

Thanks again.

OONR7 said...

I use a gradient background. The gradient start is kinda orange (a little lighter) and the gradient stop is white.