hello traders it's Samurai trader here in today's session I want to briefly cover
trading floor pivots and when not to trade against floor pivots I ran a Q&A
session for members last week and I've received 10 to 15 emails just asking if
I could give some more examples of floor pivot trades all the potential trades
around the floor pivot areas now floor pivots are of course are applicable if
you trade stocks forex or futures now in today's video I'm just going to look at
a few like trading opportunities on Forex and the and the futures market
understanding the risk I need to show this by law so if you haven't read one
of my risk disclaimers please ensure you perhaps pause the video and read the
disclaimer now everything I'm about to cover is covered comprehensively in the
day traders fast-track program my training program please visit my website
perhaps after you watch your recording request my free ebook the truth about
day trading and further information about the day traders fast-track program
so let's get straight into this because I wanted to keep this under 10 minutes
today so there's lots of different types of pivots or floor pivots you got the
standard floor trader pivots you've got woodie's pivots you've got to mark
pivots fibonacci pivots all sorts of open high/low on clothes and different
variations so it can become confusing but virtually every modern charting
package has standard floor pivots in them so that's what I want to really
focus on in this session so floor pivots are calculated in advance so floor
pivots are a really important level of support and resistance and it's very
very important that you plot them on your charts as as you're about to see
when I head towards the floor pivot I want to make sure if I'm about to enter
into a trade that I've got room for my trade to move because time and time
again not always but the majority of time you'll get a bounce around the
small pivot area so let's have a look at a couple of opportunities or a couple of
examples from today and I want to explain a couple of things which will
really enhance your trading now if you don't have a pen and paper handy you may
want to write some of this down because it's very very important because it can
dramatically dramatically improve the health of your trading account if you
understand this so first of all it's Monday the 25th to the 7th 2016 so we
were trading the Globex market here so this is that we're looking at an ES
chart this is a 233 tick chart it is very early morning in the USA Monday
morning and we're looking at a 233 volume chart here now this blue line you
can see up here is one of the pivots so you get different floor pivots plot
automatically depends on the charting package you've got and as I mentioned
floor pivots can vary a little so we can see a pivot down here and we can see our
pivot here so this is the open of the market this morning at 9:00 a.m.
actually sorry 8:00 a.m. Monday morning a strain time and of course for our
standard members you can see here we've had some t25 34b you've got your t20 t20
- 1 t25 so you've got your classic trading opportunities but looking at our
pivot bounces we can see here that price has gone up and we've had a perfect
pivot bounce here this morning now where I get really excited with pivot bounces
being the PB as I've marked it up is when I have divergence so we can see
here we were within 2 ticks of bouncing on the pivot we've come down gone up and
we've had a perfect bounce and we've actually got divergence on our platinum
down here so that was perfect now if then if we go
and look at our higher time frame and let me just pull this over here for you
let me just do one quick thing here it's turned it so forth so this
have a look at this here and I'll just pull this down as well actually let's
expand it so we can see on our higher time frame here that we also had a pivot
bounce wall naturally because pivots a calculator the same but I really love it
when I see divergence on at least one of my time frame so what we've got this is
our higher time frame so this is a 700 share bar we can see we've gone up but
what we've also got here is our t3 setup so let's now go back to the hide so to
the entry chart so we can see here we've had a t3 we've got Price accelerating
away from the trigger line it's come back down stop and we only had a perfect
turn not only a great divergence trade here but then we had a t20 straight
after so just a textbook perfect trade for us to take on our entry chart but
let's then see what happened later on in the day so we've gone down here and look
at this here so further on just very recently of course we've come down and
if you've had exactly the same setup on your higher time frame but look at the
acceleration once again away from the trigger line perfect our pivot bounce
and if you looked at the higher time frame you would have noticed also we had
a nice t3 there as well we can see then price accelerated again away from the
trig line with within one tick of a pivot bounce again and then price
dropped so you can just see here if you're a hunter where you really focus
or have what I call a sniper mentality looking for these there's some great
opportunities in trading but likewise we've got to be very cautious of course
around pivots is if you had have gone to enter a trader you would have seen it
would have been stopped out so this is where you always want to check out where
your pivots are so I've just stuck to cross now we're going to have a look at
the euro dollar this is a three range and so if we look at price section here
this is last week late last week we can see we've come in and you'll see this
quite often you'll you'll punch through by three or four pips then you've got
your pivot dance and if we just go back a little further whoops just accelerate
a bit too far back okay you got the pivot bounce but but look at this here
I've gone up you've punched through here you got a pivot bounce to the downside
punched up you bounce on the pivot to the downside again look at this again
we've come down with bounced on the pivot once again so once again that was
the three range on the Eurodollar now what we're looking at here is the ES 550
tick and this is from Friday last week we can see here we've punched through
the pivot but if we just go back a little you've just got to really watch
this it can really bounce around when I play with this here we go
okay so we can see here we've gone up we've got a of course our classic 89b
34b we go through come down we bounce up we get some nice divergence we come down
we bounce on a pivot and just look at this bouncing around there once again
where you've got to be cautious if you've got a trade entry at these sort
of points because you can see it is bounced right off at X is very very
strong support now let's just scroll along here and see what happens okay so
we can see here we've come up we've gone through we're within one tick of the
floor prove again we come down we bounce off a floor pivot again so you can see
here when you've got the t1 plot and this is for members particularly you'd
understand what the t1 is and you get a close under the trigger line under our
blue line of course away we go so we don't always make money because what can
happen is of course you can't punch through as you can see but then what
we've got at this pivot is a lovely double top at t7 and divergence so we
really love it when we get those sorts of setups but the point I wanted to make
is on this recording is that you really need to learn
and understand how floor pivots work because you can see here we've gone
through we've got a 34b and away we go and I think we'll probably find will be
bouncing on some pivots again okay and now remembering this was last
Friday and you can see here we've gone up and it's acting as resistance we
bounce down we bounce down we bounce down now what we've got then here is of
course is what we call a trading range one thing to keep in mind is when you
have a trading range the longer the trading range the larger it is or
overtime or candles usually the more violent the breakout and the more
extended the move is so let's just have a look here and see what happens
keep going okay all right and guess what it was it all right we had four or five
what was that that was good for when you finally got your breakout and by the way
to confirm a breakout what I look for is at least two candles closing above the
point and to be safe if you take the first pullback so when you get a
breakout here because if you go back and you can see here we've just bumbled
around here so how do you confirm the breakout well what do you know false
breakouts something could you see everyday you want to see at least two
candles close above the breakout and to be safe wait for your first pullback
which is there okay so there's your entry and by the way the red the reason
we didn't get that extended move was we had a debt steward of being a nice seven
eight tick trade it was Friday afternoon so I was forgetting it was Friday
it was hint of a trading day so we sort of run leveling out the contracts so the
point is there is be very careful it's an area can be really badly chopped up
on so getting back to learning more about these so members serve this is for
the day traders fast track members I'm going to be covering this in more detail
in a Q&A session I'm doing tomorrow so it'll be Tuesday the 26th I
took more about the pivot bounces we've had a lot of questions asked about pivot
bounces and support resistance and of course when you combine the support
resistance areas off your anchor chart or off your higher time frames along
with your floor pivots you can really see how powerful these areas are for
bouncers and for trading so traders hopefully you've got some
this has really got your thinking and I'll see you on the next video thank you