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
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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.
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