Volatility Based Pivot Points

Proprietary Dynamic Volatitlity Based Pivot Points were developed to determine what happens on an intraday basis only. The Pivot Points are measured from the Open for more accuracy and dependability.

Enter a Symbol, Select the type of Pivot and Press [Submit] - This will take you to a report that represents how the stock trades based around the Pivot Numbers. The Standard, Woodies, and Camarilla methods are quite common and these pages are currently still under construction as we will be adding conditions for the Open in relation to the Pivots. The following link will show the difference between the Standard Pivot Points and the Volatility Pivot Points. Pivot Comparison Example

Enter a Stock or ETF symbol and see what the historical probabilities say

Proprietary Volatility Based Pivot Points

I developed my own Pivot Points because the calculations traditionally used by traders do not reveal what I have been looking for. I wanted to know if a stock goes a certain distance from the OPEN, whether or not the stock has a good probability of continuing in that direction. One might ask why would this be important and why would you want to know that. I know that the Open is within 30% of a typical day's trading range from the High or Low 30% of the time. This number varies and is sometimes more, sometimes less. This means that if I can estimate what the day's range is going to be, I can be on the right side of the trade ~ 60% of the time. This also tells me that there is almost always a reversal in the morning, being that the Open is rarely the High or Low for the day. I developed the formula to determine the Pivots so that if the market went to the first Resistance (R1) or the first Support (S1), that the chance of a total reversal to the other side of the Open for most stocks is less than 35%. This really depends on the instrument being traded because some markets trend much better on an intraday basis than others. (For example, Sector Based ETFs Trend much better on an intraday basis than do Market Based ETFs).

Traditional Pivots

The most popular methods of determining pivots enable you to know the Pivot numbers before the market opens. This creates a stationary Pivot, but the issue here is that the Open is NOT stationary. The Open may occur in above or below the Traditional Pivot. The Traditional Pivot numbers are somewhat extreme and it takes a strong or weak market to move from one pivot to another. I also am not concerned with yesterday's price action, but today's price action and how it relates to yesterday's. (This will be explained in much more detail in more research that will be published based on where a stock open's in relation to the previous day's range and how it affects the current days action - this information will surprise you).

A New Way

I wanted to create something a little more dynamic and my only concern is the current day�s price action. To do this, I based my pivots on the volatility of the stock and calculate them from the market OPEN. As soon as a stock opens for trading and has its opening print, at that time, the Volatility Pivot Points can be calculated. The Volatility Pivots allow you to determine a few things about any stock or exchange traded fund (ETF) that traditional methods haven't been able to determine:

Does intraday trend trading work?
Do stocks continue to climb after they have gone a certain distance from the Open?
Would it be better to fade the breakout or trade the breakout?
Does the stock continue in the direction after reaching this point or does it reverse?
What percentage of the time does the stock reverse by this I want to know how often does the stock go from one extreme to the other from 1st Pivot up to 1st Pivot down and vice versa?
If the stock gets to my 1st Pivot, what percentage of the time will it get to the 2nd and 3rd Pivot Points?
If a stock reaches the Pivots - 1st, 2nd, 3rd what percentage of the time will it close beyond the Pivot?
Is a stock more likely to trend or reverse at each Pivot Point?
If a stock moves in one direction is it likely to continue in that direction.

Pivot Points

Pivot Points can be referred to as areas of Resistance and Support. If a stock opens and goes up a specific amount (measured move), there is resistance. This is obvious from the fact that we know that there is a reversal at some point in the day (otherwise, the Open would be the High or the Low of the day more often). Below illustrates where the Pivot Points are located and each move is a measured move from the OPEN of the market.

Resistance 3
Resistance 2
Resistance 1
PIVOT aka OPEN
Support 1
Support 2
Support 3

The following link will show the difference between the Traditional Pivot Points and the Volatility Pivot Points. Pivot Example

The Standard, Woodies, and Camarilla methods are quite common and these pages are currently still under construction as we will be adding conditions for the Open in relation to the Pivots.

A description of the traditional methods for calculating Pivot Points can be viewed here:

Pivot Points
These calculations are considered to be technical analysis.

Wall Street Warrior - Because Price is the final arbiter - Automated Trading Software Trading Price Patterns
Does this approach
REALLY WORK?

Reports

All reports include back tested results. Available Soon - Dynamic Reports that generate real-time data for analysis.

9:30 am ET

OPEN

What does it
really tell YOU?

Bull & Bear Traps

Bull & Bear Traps
A detailed analysis of Bull and Bear Traps and their effect on the SPY, DIA, and the QQQQ.

Proprietary Volatility Based Momentum Levels
What do they say
about the Stocks
YOU are trading?

Day Trading ETFs

Market vs. Sector Based ETFs
A detailed analysis of intraday trading activity.

Breakout vs. Pullbacks for ETF Trading
A detailed analysis of 10 ETFs with breakout vs. bullback entry methods.

Trailing Stop or Not
An intraday analysis of implementing a trailing stop when day trading ETFs.

ETF Gap Trading
Trading gaps on ETFs.

High Probability Patterns
A detailed analysis of 10 daily chart patterns on 10 ETFs.

Online Trading
Business Plan
Template

Start out Trading on the 'Right Foot'! Begin by using the Wall Street Warrior's online template to create a Trading Business Plan.

Day Trading Reports

Entry: Breakout or Pullback
What is the best entry method? A detailed analysis of 25 stocks over a 7 year period.

High Probability Patterns
A detailed analysis of 10 daily chart patterns on 25 stocks.

Gap Trading
A detailed analysis of trading gaps on 25 stocks.