Comments on: How Markets Move: GBPJPY http://trading-u.com/blog/index.php/archives/763 Forex & Futures Trading Education Sun, 09 Jan 2011 20:29:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mario Fernandes http://trading-u.com/blog/index.php/archives/763/comment-page-1#comment-92 Mario Fernandes Tue, 15 Sep 2009 09:55:59 +0000 http://trading-u.com/blog/?p=763#comment-92 I agree that Pivots are an excellent tool and are always used by professional traders. The weekly pivot plotted on the 60m chart and Daily pivot on the 15m or less charts are a key to a trader's success. By looking at your longer time frames to determine what the Trend is, then using Pivots hand-in-hand with trend-lines work really well. If the market is trending UP, then look for Long trades above the Pivot with stops below it. I find stops below the most recent dips AND below the Pivot are prudent. An excellent example is above! And the opposite is true IF the trend is Down in the longer term time frames. ie. Short below the Pivot and stops placed above it, ideally above the most recent peak above that pivot. Still it is true of what is said above; that there is little a trader needs to contribute, except to follow the plan and not too think too much about it. Ninja Trader has excellent built-in Pivots. However, S3 and R3 are way too wide. But if anyone wishes to use exactly the same Pivots as Jay uses (and the correct R3 and S3) then go to the Ninja Trader's forum and you will find the correct calculations. The link is:- http://www.ninjatrader-support2.com/vb/showthread.php?t=17966 I agree that Pivots are an excellent tool and are always used by professional traders. The weekly pivot plotted on the 60m chart and Daily pivot on the 15m or less charts are a key to a trader’s success.

By looking at your longer time frames to determine what the Trend is, then using Pivots hand-in-hand with trend-lines work really well.
If the market is trending UP, then look for Long trades above the Pivot with stops below it. I find stops below the most recent dips AND below the Pivot are prudent. An excellent example is above!

And the opposite is true IF the trend is Down in the longer term time frames. ie. Short below the Pivot and stops placed above it, ideally above the most recent peak above that pivot.

Still it is true of what is said above; that there is little a trader needs to contribute, except to follow the plan and not too think too much about it.

Ninja Trader has excellent built-in Pivots. However, S3 and R3 are way too wide. But if anyone wishes to use exactly the same Pivots as Jay uses (and the correct R3 and S3) then go to the Ninja Trader’s forum and you will find the correct calculations. The link is:-
http://www.ninjatrader-support2.com/vb/showthread.php?t=17966

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