Pivot Based Trading - 1:2 risk reward ratio (Risk less Profit more)

[radha55]

how its profitable as per fibonacci ? hi is only 2811, but the target is 2818. it hit SL.

As per norma levels, no buy triggered. sell triggered and achieved target

I was talking about the Nifty Futures May Series.

I am attaching the image here

 

[radha55]

Hi All,

Another day of success.

Today
Nifty Futures May.

As shown in the above image, we have pivot at 2783.78.

The open for Nifty Futures (May) was 2799.00.

This price is between pivot and R1.

We look at the price between 10:25 - 10:30 am.

At 10:25 - 10:30 am , the price of Nifty Futures was 2788-2792.

This value is between Pivot and R1. (For both type of values.)

So, as per rule we should buy above R1 and sell below Pivot.
Our R1 was 2805-2806.
The high for today was 2804.

We sell the below Pivot (2783.78).

Lets say we sold at 2780.
0.75% Target= 2759.15 -> Target achived. (Never hit a stop loss).
1% Target = 2752.2 -> Target achieved.

See the low for today 2750.

Now, market reversed after lunch.

So as per rule we should buy only above R1.

Price never reached above R1.

So buy didnt got triggered.

At the end of day, day ends in 1% profit or 0.75% profit.

Please reply with your paper trade if any.... or actual trade....

For all those who want to know how the system works, please refer to the first post of this thread,

 

[bandlab2]

why you guys are traing MAY series now? we are still in march.

i think its better to trade in curent month in this type of intraday methods. we can try next month 2-3 before expiry of current month

 

[radha55]

why you guys are traing MAY series now? we are still in march.

i think its better to trade in curent month in this type of intraday methods. we can try next month 2-3 before expiry of current month

ok. Thanks for the info.

 

[radha55]

Hi All,

I tracked Nifty Futures April and May Series.

Bad day.

0.5% stoploss hit today.

Day ends in 0.5% loss.

Theory failed today.

 

[Bulli]

If you are using Metastock you can have the Pivots calculated automatically for you in intraday charts.

There are too many indicator for Metastock that can do this with more or less lines,

here is one example for the indicator:

==================8<=============
{Daily Pivot Points}
{(c) 2005 Roy Larsen, www.metastocktips.co.nz}
{for use on intraday charts}
Q:=Input("Daily PP Mode, 0=Static 1=Dynamic 2=Test",0,2,0);
{0=Display, update at last bar of day}
{1=Display, update on each new bar}
{2=Backtest, update on first bar of new day}
G:=LastValue(Highest(Sum(DayOfWeek()<>
ValueWhen(2,1,DayOfWeek()),5))=5);
I:=DayOfMonth()<>ValueWhen(2,1,DayOfMonth());
M:=G OR I;
F:=G OR PeakBars(1,Zig(Hour(),1,$),1)=0;
A:=LastValue(Cum(1)-1)=Cum(1);
B:=Alert(A,2)*(A=0);
J:=If(F,1,If(Alert(F,2)=0 AND M,2,0));
J:=If(A+LastValue(J)>2 OR B+(Q=1)=2,1,J);
J:=If(G,1,If(Q=2 OR Cum(J)<=1,M*2,J));
Hd:=HighestSince(1,M,H);
Hd:=ValueWhen(1,J,If(J=1,Hd,ValueWhen(2-G,1,Hd)));
Ld:=LowestSince(1,M,L);
Ld:=ValueWhen(1,J,If(J=1,Ld,ValueWhen(2-G,1,Ld)));
K:=ValueWhen(1,J,If(J=1,C,ValueWhen(2-G,1,C)));
Hd:=ValueWhen(1,Hd>0,Hd);
Ld:=ValueWhen(1,Ld>0,Ld);
K:=ValueWhen(1,K>0,K);
PP:=(Hd+Ld+K)/3; {pivot point}
R1:=PP*2-Ld; S1:=PP*2-Hd;
R2:=PP+Hd-Ld; S2:=PP-R1+S1;
PP; R1; R2; S1; S2;
==================8<=============

Bulli

 

[rkpahwa]

Hi All,

I tracked Nifty Futures April and May Series.

Bad day.

0.5% stoploss hit today.

Day ends in 0.5% loss.

Theory failed today.

Hi Radha,

Can I ask the reason for that...

I have backtested this method for BankNifty and Aban Future from 2nd March to 20th March (March sereis). Giving good results....:clapping:

Waiting for your excel file.......

regards
rkpahwa

 

[basab19]

Hi All,

I want to introduce a very simple way of trading.

Everyone is aware of Pivots in charts.

It is very difficult to track real time pivot on intraday charts during trading hours.

After surfing lot of site and struggling, i found the way to calculate pivot based on previous day values.

After the pivot is calculated the resistance and support levels are found.

Resistance and support are of two types (using normal method and using fibonacci method.)

You can use any one of them. Both gives good result. Stick to any one method.

The system is as follows, please give your feedback and suggestions.

1. Firstly log to http : // pivottrading . 110mb . com (remove spaces)
2. Enter previous day high, low and close for any scrip.
3. Pivot is an important value here.
4. Look at the price of stock/underlying at 10:25-10:30 am. (half hour after market opens)
5. For Resistance and support values, you can choose normal values or fibonacci values. Both give good results. It depends upon you which suits you.
6. There are various scenarios which can occur.
-----1. The price is below the Pivot but above S1.
--------In this scenario, you should buy the stock/underlying above Pivot (If price reaches above Pivot) and sell below S1(if the prcies goes below S1).
----2. The price is above Pivot but below R1.
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below Pivot(if the price goes below Pivot).
----3. The price is very near to pivot (+/- 0.02%)
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below S1(if the price reaches below S1).
----4. The price is between R1 and R2.
--------In this scenario, you should buy the stock/underlying above R2 (if the price reaches above R2) and sell below Pivot(if the price reaches below Pivot). the important here is not to sell below R1. You must sell below Pivot.
----5. The price is between S1 and S2.
--------In this scenario, you should buy the stock/underlying above Pivot (if the price reaches above Pivot) and sell below S2(if the price reaches below S2). The important here is not to buy above S1, buy only above pivot.
----6. The price is between S2 and S3.
--------Same rule applies as rule 5. Buy above pivot sell below S3.
----7. The price is between R2 and R3.
--------Same rule applies as rule 4. Buy above R3 sell below Pivot.

Keep the profit, stoploss as below

Profit : 0.75% - 1%
Stoploss : 0.5%

Please please do reply with your suggestions.
I hope many of you already knows this.
No theory can become 99% successful without people's suggestions.
Do reply with your valuable comments.

Ms Radha, your Thread covering an important aspect of Stock Market Trading, is really encouraging. I have gone through your write ups thoroughly.

I seek some clarifications on points listed in your write-ups as Scenarios. It is a common goal of each Trader - to buy the asset at lower price and sell at higher price thereby cornering the neat profit. Now the levels like - R1 is greater than Pivot point in terms of value. So also, the S1 is lower than Pivot Level in terms of value.

Now let us return to the Scenario 2. THE PRICE IS ABOVE R1.
--------In this scenario, you have suggested - should buy the stock/underlying above R1 (if the price reaches above R1) and sell below Pivot(if the price goes below Pivot). It requires some elaboration from your end. We know Stock Price never rises or falls in a Straight line form, rather the pattern is a Criss-Cross one. For that reason to protect the Capital invested a Trader uses a Stoploss, in this case (S1+S2)/2 (which I follow), which is a right step. So, instead of using Stop-Loss tool why the unlucky Trader will exit at S1 thereby loosing money in the Market ?? He could wait a bit the price may soon recover and a rally may start thereafter without hitting his Stop-Loss !!

Waiting for your response please.

 

[radha55]

Hi Radha,

Can I ask the reason for that...?

I have backtested this method for BankNifty and Aban Future till 2nd March to 20th March (March sereis). Giving good results....:clapping:

Waiting for your excel file.......

regards
rkpahwa

Bandlab told we should track nearest futures so today i tracked april futures also.

and i tracked may futures because i was tracking that since monday.

so after 3 days of profit, 1 day no profit no loss, friday end in loss.

Actually market on thursday and friday was very very bad.

Our theory however managed to provide profit on thursday but on friday it failed.

I hope this stock market do not become a place like casino.

What is happening from last 2 days make me worry, if the market keeps behaving so volatile, then how we new comers will earn from stock market.

rkpahwa i hope i answered what u asked. if not ask again with specific question.

 

[radha55]

Ms Radha, your Thread covering an important aspect of Stock Market Trading, is really encouraging. I have gone through your write up thoroughly. I seek some clarifications on points listed as Scenarios. It is a common goal of each Trader - to buy the asset at lower price and sell at higher price thereby corner the neat profit. Now the levels like - R1 is greater than Pivot point (in value). Also, the S1 is lower than Pivot Level (in value).

Now let us return to the Scenario 2. The price is above Pivot but below R1.
--------In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below Pivot(if the price goes below Pivot). It requires some elaboration from your end. We know Stock Price never rises or falls in a Straight line form, rather the pattern is a Criss-Cross one. For that to protect the Capital the Trader uses a Stoploss in this case (S1+S2)/2 (which I follow) which is a right step. So, instead of using Stop-Loss tool why the unlucky Trader will exit at S1 ??

Waiting for your response please.

basab19, you completely misunderstood the theory.

But its good, you asked so that others who have same doubt can clarify.

Take Scenario 1.

When we say price is above Pivot and below R1. We should buy above R1.
"We should buy above R1" means when price crosses R1 and remains above R1 for 1-2 min, then buy...... The idea is R1 is a resistance. So when any trading instrument breaks its resistance it go up for some more time. We take benefit of that time. So we buy above R1 and sell after 0.75% - 1% profit.

If the price falls below Pivot in case of first scenario, we short sell the trading instrument and cover it back after 0.75%-1% profit.

Our theory didnt meant to buy above R1 and sell below Pivot or S1.

R1, Pivot and S1 are just some signals to buy and short sell. When we buy, we sell at 0.75%-1% profit or if 0.5% stoploss hit.

When we short sell first, we buy it back at 0.75%-1% lower or if 0.5% stoploss hits.

Let me know if you understood this.