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Old 08-12-2006, 08:05 AM
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Classic S1 Pivot Point Setup

Pivot point setup trade. Here's how I play pivots. I place a buy order 2 ticks above the actual pivot at S1. I do this to make sure I get filled. I use a 10 point stop and scale out half at +10. I move my stop to breakeven so I have half a position left with no risk.

Then I will scale out a quarter at +20. I will leave my stop at breakeven for my last quarter position.

In this chart, my entry is at 11074 (plus 2 ticks above S1). I let go of my first half at 11084 and a quarter at 11094. 11094 is also a great place to exit because it is directly at the monthly pivot. Also notice the value low pivot at 11006.

The last quarter I will try to hold on by using smart stops and will let the markets stop me out. In this case, I was able to hold on until the close.


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