And this video taken a look and pivot points and one of my favorite ways to use them, I've got the
queues in front of you and this is a 15 minute chart and this is the daily chart.
And you can see we are in a bullish mode and have been at this point for several years.
And we just continue to take on to the upside at this point.
As you know and as I've tried to pound into your head this entire course so far, do not fight the trend.
So now that we know that we don't fight the trend, we never fight the trend that leads to heartache.
We can look and pivot point, so I'm going to go click indicator's, I'm going to go to Pivot Point.
Be done with that and the thing about pivot point is they are I think they're somewhat reliable, but
they should never be used by themselves.
Now they can be used much like a Fibonacci retracement or extension in the sense that they give you
a suggestion as to where you should be looking.
And ironically, one of the things that I find most useful for pivot points, and I use the Qs because
this is a perfect example of it.
Is that when you have something, a move going against the grain, against the longer term trend?
A lot of times these pivot points are a great place to look for a trade.
So, for example, I'm going to take a look at some of these pivot points and some of these days how
they played out and give you an idea as to what I'm seeing here.
So, for example, we're in an uptrend.
As I mentioned, we gap lower during the day here right at the open.
This is 15 minutes into the trading session.
Well, the first candlestick that we form is a hammer.
We are well below the pivot.
We're at support, too.
We almost get the support.
Three, it's very rare you get beyond support or resistance.
Three.
So as we formed a hammer here, putting your stop loss below support three makes a lot of sense to below
the one.
Eighty one, you're getting in at about 182, maybe one eight two and some change.
So what are you aiming for?
You're aiming at the very least for the next support level, if not the pivot itself.
Now, you don't quite get to the pivot to the middle of the next day, but as you're closing out your
position at the end of the session, you're closing out at 184.
Not a bad little trade, two dollars or two hundred dollars per lot minus commissions.
So as I go ahead and zoom back, you can see that we gapped here, found the support at.
Resistance won and rallied a bit from there, that hammer makes a lot of sense to me, though.
I would have the Stop-Loss underneath pivot and then as the thing moved higher, I would be putting
it behind each one of these points.
Now, why do I find this gap in this support?
OK?
Well, it's because longer term, we're in an uptrend.
That's really the basis of that.
This is an interesting kandal because we open up underneath the pivot and then rally in this huge bar.
This big bar right here is reason enough to aim for higher pricing resistance.
One was always going to give you trouble.
You knew that.
But you could put your stop below the pivot and ended up working out at the end of the day.
Not a major trade, not a great trade, but certainly worked out OK.
As you can see here, we fell rather hard right away and ended up down at support three by the end of
the day.
So the fact that we reversed all of that was also another signal that that trade was going to be very
strong.
And again, keep in mind that, you know, it's very rare we get past support three or resistance three.
So at this point, if you are short of this, just because of the gap, you have to be taking profits
before you get there.
And again, it's against the trend.
So, quite frankly, I would have ignored that.
You know, when it's with a trend, I tried it.
And I say that in almost every video in this course, because with the trend is what matters.
That's what will bail you out of a lot of soso trading decisions.
Here's a gap lower.
We find support a support one by the end of the candle that to buy signal.
So where are we going?
Well, resistance one would have been one target resistance, two would have been another.
You're not interested in aiming for resistance.
Three, although it's possible.
But you recognize that resistance to support, too, are about as wide as the market gets this hammer
on support, one after a gap lower in an uptrend, perfect trade.
So this is how I like using pivot point.
It's probably by far been the most profitable way.
I use it as a signal to go with the trend when the market has perhaps thrown a bit of a tantrum.
And you can see we got lower here.
We found support the support one rallied to the pivot.
That's a nice quick little trade kind of al after that.
But full disclosure, this is a Friday.
So really, by the time you get halfway through the session, you're losing volume anyways.
No need to fight the trend.
You just use these pivot point as an area to look for buying opportunities.
If the move goes against the trend, if it goes with the trend, then you can use them as support on
the way up.
I would say if I was to rate these trades.
These pullbacks to support one, possibly even support to and a support a candle that's like an eight
plus trade for me for a short term scalp, the one that I pointed out here where we broke here and then
came down to find support and resistance, one that's maybe a B plus trade or B at best.
I don't like these as much as I like this, because this represents that the queues have gotten a bit
lower, but the value hunters are coming in.
We know it's worth more.
The market has told us that for quite some time been in an uptrend.
This, of course, has been a bit sideways in this area.
And really, when you look back and now the reason is because you can see support anyways.
So that's what you look for.
You always look for some type of secondary reason, the hammer, tertiary reason, the support, you
know, the support.
One line, the support to line offering support here, the support three line not being broken.
There's a lot of different reasons to be in this trade.
So this is kind of the perfect setup.
So, again, look for it to gap away from the trend for some type of supportive or resistant scandal
if it's in a downtrend and take advantage of these levels.