I am unable to understand the pivot points, will u pls explain. Regret for the inconvenience. New to trading. I am given to understand that if trades above pivot then bullish and if below pivot bearish. Pivot an indicator to go long or short.
Okkkzz...let me explain this as simply as is possible for me...
1) First is
Nifty Spot Close for The Day
2)
R1 Which is the first resistance point, Nifty Spot would Face or in other
words a Hurdle that it needs to cross so it can continue its move up more
easily, probable point where it might face another Hurdle is
R2
3)
S1 is the first Support from where it is possible for Nifty Spot to take
Support & move up, but if it stays there for a while and cannot seem
to move up, then the next Support point would be at
S2, which is
always a stronger support than S1 where it might reverse.
4)
Trailing Stop Loss - Comes into play only after taking appropriate position
either Long or Short whereby after it has moved you put in a Stop Loss,
thus minimising your Loss if the Nifty Spot moves against you, and while it
is moving Favourably depending on your position, you will need to keep
adjusting the Stop Loss, whereby at certain point you will have locked in
some amount of profit, in the event there is a sudden or rapid move
against your position...The art of continuously adjusting your Stops is popularly called a Trailing Stop Loss.
CAUTION: These Pivot Points I post are for Experienced or Extremely Nimble
Traders, not for Newcomers.
My Advice to You personally would be to write the Pivots down on a piece of paper and watch how the Nifty Spot behaves at the Pivots, follow the exercise diligently for a month atleast, thereafter it will depend enitrely upon you how one might want to make use of the Pivots.
Happy & Safe Trading
SavantGarde