New posts

Reply to thread

Message

Re: Learning Technical Analysis Q&A

*Facepalm*

You know when something is clear in your own head, but when you write it out you miss stuff (coz its obvious to you and when you re-read it your mind just inserts the words) and others get confused? I usually fix that with someone else proofing what I'm writing. Joe (or any of our sterling mods) is there any chance you could please edit the section in the locked thread to read.... The red bit is what I've changed.

What's a pivot point? A pivot is a minimum three bar structure where the middle bar (the pivot bar) has a higher high and higher low than the bar on either side. (For a high turning pivot - the reverse is true for a low turning pivot).

What is a soft pivot point? This is where the closing price in the bar to the right of the pivot closes within the high low range of the pivot bar. This is normally accompanied by a volume indication and is indicative of a consolidation pattern (the stock moves sideways instead of retracing). The stock merely "rests" before continuing the established upward trend and is frequently accompanied by outside and inside bars. I frequently see a lot of traders exiting at this point, depriving themselves of valuable upside potential.

What is a hard pivot? This is where theclosing price in the bar to the right of the pivot closes outside the high low range of the pivot bar. These kinds of bars give a higher quality reference point for a retracement pattern as opposed to a consolidation pattern. I use a bollinger band with only a two day sample size to determine the size of the deviation from the pivot bar. Simply put, the higher the deviation from the pivot bar, the more likely the retracement pattern will emerge.

<blockquote data-quote="Sir Osisofliver" data-source="post: 693155" data-attributes="member: 20188">Re: Learning Technical Analysis Q&amp;A*Facepalm*You know when something is clear in your own head, but when you write it out you miss stuff (coz its obvious to you and when you re-read it your mind just inserts the words) and others get confused?&nbsp; I usually fix that with someone else proofing what I&#039;m writing. Joe (or any of our sterling mods) is there any chance you could please edit the section in the locked thread to read....&nbsp; The red bit is what I&#039;ve changed.What&#039;s a pivot point? A pivot is a minimum three bar structure where the middle bar (the pivot bar) has a higher high and higher low than the bar on either side. (For a high turning pivot - the reverse is true for a low turning pivot).What is a soft pivot point? This is where the closing price in the bar to the right of the pivot closes within the high low range of the pivot bar. This is normally accompanied by a volume indication and is indicative of a consolidation pattern (the stock moves sideways instead of retracing). The stock merely &quot;rests&quot; before continuing the established upward trend and is frequently accompanied by outside and inside bars. I frequently see a lot of traders exiting at this point, depriving themselves of valuable upside potential.What is a hard pivot? This is where theclosing price in the bar to the right of the pivot closes outside the high low range of the pivot bar. These kinds of bars give a higher quality reference point for a retracement pattern as opposed to a consolidation pattern. I use a bollinger band with only a two day sample size to determine the size of the deviation from the pivot bar. Simply put, the higher the deviation from the pivot bar, the more likely the retracement pattern will emerge.</blockquote>

[QUOTE="Sir Osisofliver, post: 693155, member: 20188"] [b]Re: Learning Technical Analysis Q&A[/b] *Facepalm* You know when something is clear in your own head, but when you write it out you miss stuff (coz its obvious to you and when you re-read it your mind just inserts the words) and others get confused? I usually fix that with someone else proofing what I'm writing. Joe (or any of our sterling mods) is there any chance you could please edit the section in the locked thread to read.... The red bit is what I've changed. [B]What's a pivot point?[/B] A pivot is a minimum three bar structure where the middle bar (the pivot bar) has a higher high and higher low than the bar on either side. (For a high turning pivot - the reverse is true for a low turning pivot). [B]What is a soft pivot point? [/B]This is where [COLOR="red"]the [B]closing price[/B] in [/COLOR]the bar to the right of the pivot closes within the high low range of the pivot bar. This is normally accompanied by a volume indication and is indicative of a consolidation pattern (the stock moves sideways instead of retracing). The stock merely "rests" before continuing the established upward trend and is frequently accompanied by outside and inside bars. I frequently see a lot of traders exiting at this point, depriving themselves of valuable upside potential. [B]What is a hard pivot?[/B] This is where [COLOR="red"]the[B]closing price[/B] in the [/COLOR] bar to the right of the pivot closes [B]outside[/B] the high low range of the pivot bar. These kinds of bars give a higher quality reference point for a retracement pattern as opposed to a consolidation pattern. I use a bollinger band with only a two day sample size to determine the size of the deviation from the pivot bar. Simply put, the higher the deviation from the pivot bar, the more likely the retracement pattern will emerge. [/QUOTE]

Verification