As you can see, ES rebounded nearly 8 points from the S1 pivot
that I pointed out last night. It then stopped exactly at the
R1 pivot and sold off strongly from there.
The point is, ES trades with the pivots and you can use that to
make low risk trades.
For example taking a long at the S1 pivot last night, one could
have had limit sell orders in for the Pivot and R1 pivots, which
would have been hit for a nice gain, while your stop would have
been a couple points below the S1 pivot, for a low risk
stop.
The market has nice moves overnight with these pivots, many
times you can get a low risk long or short if you can buy or short
ES as close to the pivot as possible. If you are wrong, you
stop out for a small 2 point stop, if you are right you can make 3
- 5 times your stop risk pretty easily
markplea- please
be a little more specific on your blog questions. I don't
know if you mean where does the market go in the next hr, or this
week?
I made a post last night that was pretty clear, ignore the
futures part, but see the last two charts and my comments. I
stated that for now I viewed the pullback as a wave 4
that had further downside to go. So far that is playing out
as we had more downside today. One area to look for support
is the broken downtrend line I show on the 60 min chart.
ES testing the S1 pivot.
ES futures etc
Posted by matt on 28th of Dec 2011 at 12:58 am
ES testing the S1 pivot. The S2 pivot below, if this fails, is 1252 (blue dotted line below)
Here's an updated 5 min
Posted by matt on 28th of Dec 2011 at 10:00 am
Here's an updated 5 min ES chart.
As you can see, ES rebounded nearly 8 points from the S1 pivot that I pointed out last night. It then stopped exactly at the R1 pivot and sold off strongly from there.
The point is, ES trades with the pivots and you can use that to make low risk trades.
For example taking a long at the S1 pivot last night, one could have had limit sell orders in for the Pivot and R1 pivots, which would have been hit for a nice gain, while your stop would have been a couple points below the S1 pivot, for a low risk stop.
The market has nice moves overnight with these pivots, many times you can get a low risk long or short if you can buy or short ES as close to the pivot as possible. If you are wrong, you stop out for a small 2 point stop, if you are right you can make 3 - 5 times your stop risk pretty easily
where to from here???
Posted by markplea on 28th of Dec 2011 at 10:03 am
markplea- please be a little more
Posted by matt on 28th of Dec 2011 at 10:12 am
markplea- please be a little more specific on your blog questions. I don't know if you mean where does the market go in the next hr, or this week?
I made a post last night that was pretty clear, ignore the futures part, but see the last two charts and my comments. I stated that for now I viewed the pullback as a wave 4 that had further downside to go. So far that is playing out as we had more downside today. One area to look for support is the broken downtrend line I show on the 60 min chart.
here's the URL to my post from last night
http://breakpointtrades.com/blog/post/188787/