Pivot Points are an extremely valuable tool that can be incorporated into almost any trading style or system. They allow traders to identify breakout conditions, set price targets, and remain aware of important support and resistance levels in the market.
However, Traders who utilize the weekly Pivot Points developed within Tradeshark, have the added benefit of predictive data which is incorporated into the pivot point calculation. This offers traders a huge advantage over other pivot point implementations and when combined with Tradeshark’s other predictive indicators, can allow traders to approach the markets with consistency and confidence.
To demonstrate how Tradeshark users can incorporate pivot points into their trading approach, I will utilize this chart for Apple stock. Like all other Tradeshark indicators, pivot points can be added to any chart selection with a simple drag and drop. The pivot point will then be applied to the chart along with some extra space for easier viewing.
As we can see in this example for Apple stock, the market had closed on a Friday above the next weekly pivot point, suggesting continued bullishness for the next trading week. Trader would look to enter long positions, with the first and second resistance level set as expected profit targets. In this example we can see the market immediately moved to resistance level one, with Tradesharks predicted range, forecasting a predicted high just above resistance level two.
Tradeshark users will also have the ability to easily combine these pivot levels with the highly accurate Neural index forecasts. For example, when added to the chart, we can see that not only was the market close above the next weeks pivot point, but the neural index was forecasting average prices to continue to move higher over the next two days. This combined approach, allows traders to identify opportunities with a very high likelihood of performing to expectations.
Day trading aside, Swing or position traders will find pivot points to be quite valuable as well, since they so often highlight important support and resistance levels. In this example for Gold, we can clearly see tradeshark standard trend forecast had predicted a trend change almost three weeks ago. I will go ahead ahead and change the template to a pre made selection so we can view the weekly pivot points along with the standard trend forecast from tradeshark.
A swing trader using Tradeshark’s predicted weekly pivots, would be keenly well aware to take some profits at the first or second resistance level soon after entering the market. Additionally, as prices began to declined from that level, the trader would then look to buy back into the position at the nearest support level. Remember, Tradeshark is still forecasting the market to trend higher indicating traders should look to go long the market on any pullbacks.
By combining pivot points with the Tradeshark forecasts in this fashion, traders can manage their positions more effectively often resulting in much greater trading profits.
In addition to the weekly predicted pivots, Longer Term traders, may wish to make use of the Monthly and Quarterly pivot points within tradeshark. These higher time frame pivot points are located in the indicator tray and can be applied to the charts just like the weekly pivots.
For more information on pivot points and Tradeshark’s proprietary trend forecasting technology, be sure to visit the tradeshark learning center from your software’s start page, or visit the website at www.tradeshark.com.