Pivot points have been around for 100 years, but all of a sudden they seem to be the retail trader’s best friend of late. A plethora of sites now are popping up all over the place telling everyone how great they.
Pivot points are yesterday’s heroes. Ask anyone what’s the expectancy that this pivot point is going to be support or resistance and he or she won’t have an answer and can’t give you one.
I have introduced many retail traders to pivot points and especially higher timeframe pivot points, something traders rarely ever looked at. I also introduced many to Range Bars and other trading techniques along with systems development for derivative markets. I’m the developer of the AMT mathematical dynamic trading model that many know and use. In my opinion the only truly mathematical model that is not curved fitted to suit the price action.
Reefcap forum was the first place I introduced the 3-period Market Dynamic Model of Time as a robust methodology for others to use many years ago. I’ve gained respect from some quarters and is a handy tool to use.
There are only a few methodologies that have come along that become part of a traders arsenal. Some live by them and some dismiss them. Those methodologies are Market profile and Elliot Wave. In my opinion the AMT market dynamic model is one of those methodologies and probably the simplest one to use and understand.
It’s a simple dynamic Math model of Time and price, that has a realistic expectation of following the market path of time and also a realistic expectation of the market reversing and rotating back towards dynamic 50% levels.
AMT Dynamic Trading Model © Frank Dilernia
I’m now introducing a new
PRICE TIME and STATISICAL trading model for trading derivatives, currencies and futures.
It’s based on the statistical range of markets and the open of the trading day.
It’s called OPEN TRADING DYNAMICS © Frank Dilernia
OTD is based on the open each day and the statistical probability of the market reversing at that point in the ‘day’. It clearly defines a RISK model for each day.
Each trading day is defined by a ‘star’ (as shown in the charts). This star is confirmed not by the open of the trading day but actually the completion of the statistical range from the previous day.
Once the statistical range has completed, there is a ‘positive’ expectation that price will repel away from the OPEN that same statistical range. I call it OPEN-BIAS trading.
OTD clearly defines market dynamics for that day, because it defines Risk.
Below are ‘time dated reports’ so traders can see how markets have moved to a realistic expectation that there is a predictability to the markets.
It’s best to start with 26 August and finish with 9th September and see how next week might already play out.
Each report shows 4 different markets, DOW, SPI, DAX, Russell 2000.
OTD and AMT is a universal model that can be used on all markets.
www.datafeeds.com.au/AMT26AUG.pdf
www.datafeeds.com.au/AMT2Sept.pdf
www.datafeeds.com.au/AMT6Sept1.pdf
www.datafeeds.com.au/AMT6Sept2.pdf
www.datafeeds.com.au/AMT9Sept.pdf
There is talk about the US markets tanking and so on, hopefully these reports especially the last report will give order to the perception of chaos in the markets that some perceive.
The OTD model is ideal in trading consolidating markets, the past few months have been ideal. OTD trading doesn’t like Trending markets because it relies on volatility and ranges within the market structure. Trending markets don’t have that because markets don’t pull back to allow that ‘open bias’ to occur. (Sept 2 page 7 on DAX shows this)
I hope these reports might be of interest to some traders and look at markets in a different light.
Frank Dilernia.
All information is owned a copyrighted by Frank Dilernia
AMT Market Dynamic Model © Frank Dilernia
OTD Open Trading Dynamics © Frank Dilernia
All information is only for educational purpose and not trading advice.
Please allow for a few minutes for each PDF file to load.