[Soultrader]

This is my core trading concept: using pivot point cluster levels.

I am mainly a pivot point player entering and exit around key price levels instead of using indicators. I want to show you how I obtain these numbers:

First, I will plot the daily, weekly, and monthly pivots. I use midpoints only for the daily pivots. By rank, I place importance on the Daily Pivot (PP), then S1 - S3 & R1 - R3, then the midpoints. I use the midpoints primarily for exit targets and not much for entries. Then I will plot the value high (VAH), value low (VAL), and point of control (POC). I will then plot yesterdays high and low and the 50% range of yesterdays action. I will also plot any unfilled gaps (I keep a daily spreadsheet for all this data).

I know this seems like alot of levels but they are not as complicated as you may think. Once every level is plotted I will look for cluster zones. Anytime two or more pivots line up with each other by less than 10pts (on the Dow mini) I plot this as an ultra key level. These are the levels that I will be looking to trade.

I will erase any pivot point that are not significant. When prices do reach these pivot cluster zones, I will watch the tape carefully to look for quick price rejection. I also use a combination of market profile mainly to understand the bigger picture.