[idaxtrader]

The first combo strategy is a Point A through the Piovt. (called A through the pivot)

At first glance, you know that sets up a bearish tone for the next day since the settlement was below the pivot range. Assume that the market does trade higher,easily penetrating the lower end of the pivot range and trades all the way to the other side of the pivot range which is where it also make an A up. At this point the market has made an A up and has traded through the pivot.

The stop for a simple A up is point B, which is just below the bottom of the opening range. However, going long with an A up through the pivot, your stop would be just below the bottom of the pivot range.

Going long at a Point A up after the market trades through the entire pivot range increases your confidence to make a trade. Putting your stop just below the bottom of the pivot range minimizes risk.

In other words, if the pivot is sitting above an A up or below an A down you might as well wait for the market to take out the pivot and confirm the A is really valid.

Going short after the market makes an A down through the pivot increases your confidence in the trade. Minimize the risk by putting your stop just above the top of the pivot range.

A failed A occurs when the market touches or approaches an A up or A down, but doesn't spend enough time there to validate the point. Or, it approaches an A up or an A down , but snaps back, which we called a rubber band trade. No if the situations occur with a failed A in the pivot range- meaning the market just barely makes it into the pivot range but snaps back before the point A your conviction to trade the signal increases.

The failed A coupled with a failure within the pivot range increase the likelihood of the market reversing to the downside. You'd have a stop one tick above the pivot range.

Good A up through the pivot range: Buy the A up through the pivot. Put stop just below bottom of pivot range or use a time stop.

Good A down through the pivot range: Sell the A down through the pivot. Put stop just above top of pivot range or use a time stop.

Failed A down against the pivot: Buy the failed A down through or against the pivot, as the market snaps back. Put stop just below the bottom of pivot range.

Failed A up against the pivot: Sell the failed A up through or against the pivot, as the market snaps back. Put stop just above the top of pivot range.

If the market, makes an A down early in the day, then rallies through the opening range and through the pivot range to make a point C on the upside. Place stop just below the bottom of the pivot range. (Point C through the pivot)

If the market, makes an A up early in the day, then sells through the opening range and through the pivot range to make a point C on the downside. Place stop just above the top of the pivot range. (Point C through the pivot)