What are Pit Pivot
Points?
A brief excerpt from the
Pivot Magic
Trading Course Book
Pit Pivot Points
form the base trading method used by the locals (traders on
the floor of the exchange). The skeleton for defining
expectations for today's trading is the historical
Support/Resistance, High, Low, and Close, of yesterday's day
session.
Crunching these prices in a
very simplistic formula, they project the most powerful
anticipated Support/Resistance level for today's trading, the
fulcrum or "Pivot Point". (A secondary fulcrum called the
"Mid" is also calculated as the middle point between
yesterday's High and yesterday's Low.)
Again
using simple formulae, floor traders next extrapolate how far
the market is likely to move, up or down from the Pivot Point.
The first projected/anticipated level of Resistance above the
Pivot Point (fulcrum) is "R1".
The next higher calculated
Resistance levels are "R2" and "R3", respectively. Similarly,
the first level of projected Support under the Pivot Point is
"S1". The next lower levels of Support are "R2", and "R3",
respectively.
During the upcoming session, unless the
price is influenced by non-quantifiable outside forces such as
economic reports or news, locals will trade up and down rather
strictly between these calculated points.
Knowing
how the market makers will be trading gives us our edge. We
make use of this information in our Pivot Magic Trading
methods.
What other Futures Professionals have to say
about
Pivot Magic Trading:
Unlike
other forms of position trading, day trading commodities
requires a trader to be focused on just the “right” set of
signals before initiating a trade. For a day trader, a wrong
move can spell substantial losses. Yet in spite of the dangers
and the fast pace of day trading, more and more traders flock
to the venue, unfortunately many enter the market ill prepared
to trade.
Pivot points have long been used by traders
in the pits to highlight important support and resistance
levels based on the previous day’s action. And while pivot
points might be commonplace, knowing how to trade them is not.
In spite of their almost universal acceptance among floor
traders, very little helpful information is available about
how to actually use them! Enter Pivot Magic
Trading.
Asher Landesman has taken it upon himself to
fill this most urgent need for day traders. In his manual,
Pivot Magic Trading, Asher takes you by the hand and explains
how to use pivots to successfully day trade the markets. And
while pivots can be used in any market, he gives specific
insights into trading the extremely popular S&P
E-mini.
Through the use of extremely detailed examples,
Asher leaves no room for doubt about how to day trade with
Pivots, but that is not all. He also provides you with the
exact forms he uses to trade as well as a trading log to track
your results.
For anyone interested in day trading
using the same strategies that the Floor Traders use, Pivot
Magic Trading is a must read. It is my hope that his book
gives you the “edge” you need to succeed in day trading the
commodity markets.
Best of trading success to
you,
Erich Senft, CTA
Traders Helping
Traders
Click here to get the PMT Course
>>
Disclaimer and
Risk Disclosure
Futures and or options
trading is not for everyone. There is substantial risk of loss
when trading futures. You should carefully evaluate whether
trading in the futures markets is appropriate for you. You may
incur losses which may considerably exceed your margin
deposits. Past performance is no guarantee of future
success.
CFTC RULE
4.41
HYPOTHETICAL OR SIMULATED
PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL
PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL
TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE
RESULTS MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF
ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE
FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS
LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE
SHOWN. |
