Here is a great twist on what has become a very overused trading strategy.
Floor traders use pivot points to dictate where to go long and where to go short.
If you are not familiar with Pivot Points just type the words into any search engine and
you will be given a plethora of places to read up on them.
The main problem I have had with these pivot points is that they are known by everybody and many traders use them. This makes them less effective for trading unless you can decipher where the bulk of traders are going use what pivots and pounce before the market gets there. This theory however uses quite a bit of guess work and I do not like guess work!
Enter the twist on the Pivot Points that I use in my trading.
I calculate the 50% and 62% level in between pivot points and use these as my areas to look for a short position or a long position.
See below the one minute chart of today and notice how I have market both the pivot points and also the 50% and 62% relationships to these points.
In my trading I put a lot less emphasis on the widely known pivot points and a lot of credence on the off shoot of this theory. It has done very well for me over the years and I encourage you to take a look and mess around with them for a while.
Combine these pivots with some very simple oscillators and you have a very simple yet effective trading system. Add some moving averages into the mix and you are bordering on signals that many traders would kill for.
I don't want to give all of it away. I would like you to experiment with some combinations of technical indicators and the pivots. I think you will be pleasantly surprised!