Pivot and Tick chart

PIVOT

As use in IRIS or use the pivot given in Wilder Book. RTS System. New concept in technical trading.

In RTS we have Center Point- (H/L/C)/3 and 2 resistance and 2 support or 2 upper level or 2 lower levels as you can call it. I call level Level 3 and Level 4 and lower side Level 2 and Level 1.

Generally Level 3 which is the upper level and level 2 is the lower level. This is the high probability zone where price fluctuates.

Level 3 is to be used to indentify sell and Level 2 is to identify Buy

How to use.

Wait for a rise above Level 3 and when it falls below Level 3 then sell with high above level 3 as stop loss is the logic.

If the stop loss get crossed then can trade long with the higher bottom below the stop loss Level 3 as the stop loss.

Similarly, if level 2 is used to indentify buy. Wait for a fall below Level 2 and when it moves above Level 2 then buy with low below Level 2 as the stop loss.

The example posted will be from the IRIS software. Intra-day pivot lines.

Will be using tick chart

Now the assumption at this point is the brokerage structure is expected to be low

Say 0.05% one side at least or 0.10% both side maximum. If brokerage

The execution has to be fast and quick in blink of an eye as it is on tick chart.

You should have the terminal in front for you to trade or some on line trading platform.

The blue color dotted line is the pivot level 3

In first 5 minutes scale above the pivot of 112.7 and made a high of 113.85.

When in falls below 112.7 say 112.5 or below the action to sell is to be initiated with a stop loss of 113.85

If sold at 112.5 with brokerage cost will be 112.35.

The target arrived can be 111.2-110.8-109.70. based of 1.27, 1.618 and 2.618 of the difference between the stop loss and the sell price.

Low made 109.65 and hits with volume.

The picture of the example is posted on the link.

Pivot can be used as entry and exit point on stand alone basis as well. You can cover positions at center point of below of the previous day as well.