prabhjeet sir.....please do add if i am missing nething.....or if there is nething that i have stated wrong in above posts....
i have learnt so much from you....this pivot identifying using rsi hav helped me a lot...and u hav much more experience in dis.....please do share about this.....
i will soon try to post some recent charts with reference to rsi.....please do share some of ur charts.....
also i think there r some exceptions in RSi......i will post some recent 1's .... if i am stating dis correct...u also post...
thank u
regards
neeraj
Neeraj you have summed up the whole thing in an even better way than I could, very well done.
Just a few things to add, most of the times when using RSI (3) you will see that the our SAR are lot more far than when we are using Aggressive pivots, this is a Trade- off actually, you need to provide a large room to your stock to move and the profits are usually big, so the only thing we will require are the nerves of steel, we have to believe that Pivot stoploss will make us much more money even when there is a large amount of profits lying on Table
Though you have to provide enough room for normal movement but dont put your stops so far away from action that you reverse too late. Now this is one thing that you will get habitual with only once you start Trading any particular security. In my eyes every stock has its own character, some will move giving Pivots that are very near to each other, other stocks will move as if they are never going to correct, but that character of stock I cannot tell anybody, you cannot know it until you know it yourself.
Though I dont use Aggressive Pivots very often but they do have place in my system, once I start to feel that the move is getting too vertical, I will try to use any tiny-miny Pivot that I see near by.
There is also another exit stoploss that I use which takes Volatility into picture. What I usuaaly do is that take the formula Average True Range (20), multiply it by 4 and then my stoploss will be this much far from the Highest high of move and I will keep trailing it behind until hit. Even if its hit and stock starts to move back, we should not feel bad, afterall these are markets but most of the times, you will get stopped only when trend is about to reverse
