Dragon Pattern

Last Month Performance

(Only Morning Sessions and not everyday)

Week 4: +17.3
Week 3: +33.35
Week 2: +31.05
Week 1: +21.9

Fed Meeting Monday/Tuesday

Where is my Dragon Head?

Dec 10th 30 Min

Dec 5th Trading Notes (Volume)

Pivots, Introduction

INTRODUCTION

I will be posting ideas, tips, and information about Support and Resistance lines which from now on I will call Pivots.

A Pivot is the price level in which the trend will find Support and/or Resistance once is reached. Depeding on the Strenght of the Trend compare to the Strenght of the Pivot, the pivot may pause or reverse the trend.

You can find Pivots looking for Highs, Lows and Boxes of volume. The best chart to find pivots usually is a volume chart.

Obviously the bigger the time frame that shows the pivot , the more important the pivot is. It will be a lot more significant a pivot found in daily chart than in a 1k volume chart. But if the pivot is found in the daily chart you should be expecting price react to the pivot in smaller time frames, so the 1k volume chart must show it as well.

These are examples of how to find pivots:

a) Examples of Boxes of volume showing us the Pivot

b) Example of Broken Support that is tested after (Perfect Entry) to continue the trend

c) Example of a Bottom (Be aware of false breakouts of Pivots)

Looking for pivots

It is not a perfect science, but if you trade every day you see how the price reacts to a price levels and you literally remember them.

First start with the daily chart, or weekly chart, look for highs, lows , support areas, resistance areas, close of the day etc. You will get the most important ones in the daily chart or weekly chart, as they are significant for big players. Intraday pivots are important for day traders to get in etc. but are meaningless for big players.I like highs and lows in the 100k. I like also the ones where there are boxes of volume in both sides of the pivot, so R->S and S->R. Also sometimes there is an overshoot effect on the pivot and the price cross but you can see a second test of the pivot to the tick later on in low volume (no strenght to cross the pivot). Be aware of the stop runs, so I might not take the high of the bar or low of the bar to mark the pivot.

With my risk ratio, I like pivots every 10 points more or less. Of course I dont force them , I let the price to show them. Some areas can be very noisy so the pivot is not a horizontal line is more like an area.

During the day AHG guys also mark the LOTM pivots (language of the market) which are intraday pivots which show S->R or R->S and can be use to entry.You can clasify the pivots in order of importance so you know which ones are more significant, I am trying to develop this more and clasify them. I do that with the trendlines btw, one day I will show it. I think we need to write a document about pivots and create a clasification.