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Old 09-02-2006, 12:02 PM
luke24.5 luke24.5 is offline
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You need software like Market Delta, TapeReader, TradeMaven etc. that records Bid/Ask info. The delta is the difference between buyers and sellers.

Set your bars to any period, (30 min chart correlates well with MP), and watch orderflow.

9/106 in ES for example. Early selling entered the market at 10.50. The positive delta dried up and heavy selling drove the market down. When price returned to 1025-50 sellers reentered. (New Resistance) Large lots added to their position. This drove the market down to 1307.75 where the market stalled then retraced a point. Heavy selling again @ 8.50 (new resistance). If you missed the first move it's the area to look for uptick to to enter your short.

Sellers started to lose control as everytime they pushed the market down, more buyers entered at the low. Still 8.50 was the line in the sand. The day's negative delta was drying up, and when price crossed 8.50 on the way up with increasing volume, the war was over. Buyers won. 8.50 now becomes support and a test of the high likely.

HLC deduced pivots work approximately, but I think you'll find that voulme studies will fine tune them especially if you're an intraday trader.

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