WEBVTT 00:03.950 --> 00:11.930 And this video taken a look and pivot points and one of my favorite ways to use them, I've got the 00:11.930 --> 00:16.880 queues in front of you and this is a 15 minute chart and this is the daily chart. 00:16.880 --> 00:23.750 And you can see we are in a bullish mode and have been at this point for several years. 00:24.200 --> 00:28.550 And we just continue to take on to the upside at this point. 00:28.910 --> 00:36.400 As you know and as I've tried to pound into your head this entire course so far, do not fight the trend. 00:36.650 --> 00:42.440 So now that we know that we don't fight the trend, we never fight the trend that leads to heartache. 00:43.730 --> 00:51.770 We can look and pivot point, so I'm going to go click indicator's, I'm going to go to Pivot Point. 00:54.920 --> 01:02.870 Be done with that and the thing about pivot point is they are I think they're somewhat reliable, but 01:02.870 --> 01:05.180 they should never be used by themselves. 01:05.180 --> 01:12.680 Now they can be used much like a Fibonacci retracement or extension in the sense that they give you 01:12.710 --> 01:16.250 a suggestion as to where you should be looking. 01:17.130 --> 01:27.120 And ironically, one of the things that I find most useful for pivot points, and I use the Qs because 01:27.120 --> 01:28.590 this is a perfect example of it. 01:30.040 --> 01:35.570 Is that when you have something, a move going against the grain, against the longer term trend? 01:35.890 --> 01:40.090 A lot of times these pivot points are a great place to look for a trade. 01:41.040 --> 01:46.140 So, for example, I'm going to take a look at some of these pivot points and some of these days how 01:46.140 --> 01:48.820 they played out and give you an idea as to what I'm seeing here. 01:49.350 --> 01:51.000 So, for example, we're in an uptrend. 01:51.000 --> 01:55.620 As I mentioned, we gap lower during the day here right at the open. 01:55.620 --> 01:57.820 This is 15 minutes into the trading session. 01:58.290 --> 02:02.150 Well, the first candlestick that we form is a hammer. 02:03.030 --> 02:05.250 We are well below the pivot. 02:05.250 --> 02:06.900 We're at support, too. 02:07.080 --> 02:08.670 We almost get the support. 02:08.670 --> 02:12.840 Three, it's very rare you get beyond support or resistance. 02:13.020 --> 02:13.550 Three. 02:14.280 --> 02:21.330 So as we formed a hammer here, putting your stop loss below support three makes a lot of sense to below 02:21.330 --> 02:21.720 the one. 02:21.720 --> 02:26.750 Eighty one, you're getting in at about 182, maybe one eight two and some change. 02:27.060 --> 02:28.860 So what are you aiming for? 02:29.910 --> 02:34.350 You're aiming at the very least for the next support level, if not the pivot itself. 02:34.350 --> 02:39.150 Now, you don't quite get to the pivot to the middle of the next day, but as you're closing out your 02:39.150 --> 02:43.320 position at the end of the session, you're closing out at 184. 02:43.350 --> 02:49.620 Not a bad little trade, two dollars or two hundred dollars per lot minus commissions. 02:51.550 --> 02:59.740 So as I go ahead and zoom back, you can see that we gapped here, found the support at. 03:01.490 --> 03:07.370 Resistance won and rallied a bit from there, that hammer makes a lot of sense to me, though. 03:07.400 --> 03:15.230 I would have the Stop-Loss underneath pivot and then as the thing moved higher, I would be putting 03:15.230 --> 03:16.740 it behind each one of these points. 03:17.150 --> 03:20.840 Now, why do I find this gap in this support? 03:20.840 --> 03:21.310 OK? 03:21.350 --> 03:23.920 Well, it's because longer term, we're in an uptrend. 03:24.080 --> 03:26.680 That's really the basis of that. 03:27.320 --> 03:33.200 This is an interesting kandal because we open up underneath the pivot and then rally in this huge bar. 03:33.650 --> 03:41.090 This big bar right here is reason enough to aim for higher pricing resistance. 03:41.090 --> 03:42.800 One was always going to give you trouble. 03:42.800 --> 03:43.550 You knew that. 03:44.000 --> 03:47.660 But you could put your stop below the pivot and ended up working out at the end of the day. 03:47.720 --> 03:51.760 Not a major trade, not a great trade, but certainly worked out OK. 03:53.730 --> 04:05.850 As you can see here, we fell rather hard right away and ended up down at support three by the end of 04:05.850 --> 04:06.350 the day. 04:06.750 --> 04:11.760 So the fact that we reversed all of that was also another signal that that trade was going to be very 04:11.760 --> 04:12.240 strong. 04:12.240 --> 04:18.830 And again, keep in mind that, you know, it's very rare we get past support three or resistance three. 04:19.110 --> 04:25.080 So at this point, if you are short of this, just because of the gap, you have to be taking profits 04:25.080 --> 04:25.830 before you get there. 04:25.830 --> 04:27.030 And again, it's against the trend. 04:27.040 --> 04:28.980 So, quite frankly, I would have ignored that. 04:30.450 --> 04:32.580 You know, when it's with a trend, I tried it. 04:32.580 --> 04:38.210 And I say that in almost every video in this course, because with the trend is what matters. 04:38.520 --> 04:42.530 That's what will bail you out of a lot of soso trading decisions. 04:43.290 --> 04:44.280 Here's a gap lower. 04:44.640 --> 04:48.010 We find support a support one by the end of the candle that to buy signal. 04:48.030 --> 04:48.990 So where are we going? 04:49.020 --> 04:53.810 Well, resistance one would have been one target resistance, two would have been another. 04:53.820 --> 04:56.160 You're not interested in aiming for resistance. 04:56.160 --> 04:58.410 Three, although it's possible. 04:58.770 --> 05:03.780 But you recognize that resistance to support, too, are about as wide as the market gets this hammer 05:03.810 --> 05:08.100 on support, one after a gap lower in an uptrend, perfect trade. 05:08.670 --> 05:12.930 So this is how I like using pivot point. 05:13.440 --> 05:16.710 It's probably by far been the most profitable way. 05:16.740 --> 05:22.590 I use it as a signal to go with the trend when the market has perhaps thrown a bit of a tantrum. 05:22.890 --> 05:24.900 And you can see we got lower here. 05:24.900 --> 05:28.170 We found support the support one rallied to the pivot. 05:28.200 --> 05:31.590 That's a nice quick little trade kind of al after that. 05:31.590 --> 05:33.870 But full disclosure, this is a Friday. 05:34.140 --> 05:39.150 So really, by the time you get halfway through the session, you're losing volume anyways. 05:39.810 --> 05:41.160 No need to fight the trend. 05:41.190 --> 05:46.350 You just use these pivot point as an area to look for buying opportunities. 05:46.350 --> 05:52.170 If the move goes against the trend, if it goes with the trend, then you can use them as support on 05:52.170 --> 05:52.710 the way up. 05:54.100 --> 05:58.780 I would say if I was to rate these trades. 05:59.960 --> 06:05.000 These pullbacks to support one, possibly even support to and a support a candle that's like an eight 06:05.000 --> 06:11.120 plus trade for me for a short term scalp, the one that I pointed out here where we broke here and then 06:11.120 --> 06:17.920 came down to find support and resistance, one that's maybe a B plus trade or B at best. 06:18.290 --> 06:24.170 I don't like these as much as I like this, because this represents that the queues have gotten a bit 06:24.170 --> 06:26.530 lower, but the value hunters are coming in. 06:26.750 --> 06:27.980 We know it's worth more. 06:28.160 --> 06:32.390 The market has told us that for quite some time been in an uptrend. 06:32.420 --> 06:35.000 This, of course, has been a bit sideways in this area. 06:35.240 --> 06:39.590 And really, when you look back and now the reason is because you can see support anyways. 06:39.590 --> 06:42.570 So that's what you look for. 06:42.590 --> 06:49.180 You always look for some type of secondary reason, the hammer, tertiary reason, the support, you 06:49.190 --> 06:50.180 know, the support. 06:50.510 --> 06:57.470 One line, the support to line offering support here, the support three line not being broken. 06:57.470 --> 06:59.780 There's a lot of different reasons to be in this trade. 06:59.780 --> 07:01.490 So this is kind of the perfect setup. 07:02.120 --> 07:07.370 So, again, look for it to gap away from the trend for some type of supportive or resistant scandal 07:07.370 --> 07:10.160 if it's in a downtrend and take advantage of these levels.