Using Pivot Points for Market Ideas

[BambinoFlex]

Really a risk box can be used for any trade type. Several types of risk and trade management can be used with it. They main thing is to use low leverage then then you catch your position add and normlize your risk each time. Also you must have an exit plan that pays you off enough. They are very important

If I have some time on my desktop Saturday or Sunday I'll see about posting some risk box ideas.

Thank you! I'll post what I mean as well. Since the premise of creating a box isn't hard to understand, but the placement and the whole add and normalize situation is where I get lost. Not because I want to copy the method, but because I want to understand the "why?" and how those "why's?" help plus their limitations.

Probably be easier for me to respond to your specific question then. The box is about limiting risk and increasing profitability. I'll wait for your example.

So we can start here. I drew the box at the bottom since that is what I would normally encounter. Is that correct way of drawing the box? Simply divide the the distance by the number of my choice?

[aliassmith]

Thank you! I'll post what I mean as well. Since the premise of creating a box isn't hard to understand, but the placement and the whole add and normalize situation is where I get lost. Not because I want to copy the method, but because I want to understand the "why?" and how those "why's?" help plus their limitations.

Probably be easier for me to respond to your specific question then. The box is about limiting risk and increasing profitability. I'll wait for your example.

So we can start here. I drew the box at the bottom since that is what I would normally encounter. Is that correct way of drawing the box? Simply divide the the distance by the number of my choice?

The box can be like that as long as you entered somewhere inside it.

As price went in your favor you would add +1+2+4+8 units or whatever you are comfortable with.

As price comes back toward your entry you need to close out some profit then re-enter at a better price. Then as it moves in your favor you add +1+2+4+8+16

You do the adding and liquidating until you get the move you are looking for or you would rather close out and look at something else.

Why use the box?
It might start out at half your normal risk and it gives you staying power for the times you would of got wicked out with a tight stop.

You don't wait until your stop is hit. You need criteria to exit. So now you might be risking only 1/3 of your normal risk on average.

[TheRumpledOne]

Thanks TRO, I actually enjoyed using the BFSR settings on the regular Dashboard. Reason is that I could tell if price had passed R1 or S1.

I can't add the preset file but black means down yellow means up and goldenrod means S1 or R1 have been crossed. I'm red-green color blind so I mess with the colors to help me see it better.

The dashboard I posted is used to display which direction to trade so you don't have to figure it out.

I was thinking about turning the color to gray if the target has been hit/exceeded.

[BambinoFlex]

Probably be easier for me to respond to your specific question then. The box is about limiting risk and increasing profitability. I'll wait for your example.

So we can start here. I drew the box at the bottom since that is what I would normally encounter. Is that correct way of drawing the box? Simply divide the the distance by the number of my choice?

The box can be like that as long as you entered somewhere inside it.

As price went in your favor you would add +1+2+4+8 units or whatever you are comfortable with.

As price comes back toward your entry you need to close out some profit then re-enter at a better price. Then as it moves in your favor you add +1+2+4+8+16

You do the adding and liquidating until you get the move you are looking for or you would rather close out and look at something else.

Why use the box?
It might start out at half your normal risk and it gives you staying power for the times you would of got wicked out with a tight stop.

You don't wait until your stop is hit. You need criteria to exit. So now you might be risking only 1/3 of your normal risk on average.

Okay, I'm getting a picture in my head. I think drawing it up and trying to figure out the questions is helping me.

Do I start with my full position based on the size of the box? As price moves against me, do I cut partials to lessen the total from being used up? But If price does turn around, then I can start adding again or if I think its just a pull back against me, I can exit with a smaller total loss?

[BambinoFlex]

Thanks TRO, I actually enjoyed using the BFSR settings on the regular Dashboard. Reason is that I could tell if price had passed R1 or S1.

I can't add the preset file but black means down yellow means up and goldenrod means S1 or R1 have been crossed. I'm red-green color blind so I mess with the colors to help me see it better.

The dashboard I posted is used to display which direction to trade so you don't have to figure it out.

I was thinking about turning the color to gray if the target has been hit/exceeded.

Thank you for the indicator TRO, it can help out filter my weekly choice of pairs.

[aliassmith]

So we can start here. I drew the box at the bottom since that is what I would normally encounter. Is that correct way of drawing the box? Simply divide the the distance by the number of my choice?

The box can be like that as long as you entered somewhere inside it.

As price went in your favor you would add +1+2+4+8 units or whatever you are comfortable with.

As price comes back toward your entry you need to close out some profit then re-enter at a better price. Then as it moves in your favor you add +1+2+4+8+16

You do the adding and liquidating until you get the move you are looking for or you would rather close out and look at something else.

Why use the box?
It might start out at half your normal risk and it gives you staying power for the times you would of got wicked out with a tight stop.

You don't wait until your stop is hit. You need criteria to exit. So now you might be risking only 1/3 of your normal risk on average.

Okay, I'm getting a picture in my head. I think drawing it up and trying to figure out the questions is helping me.

Do I start with my full position based on the size of the box? As price moves against me, do I cut partials to lessen the total from being used up? But If price does turn around, then I can start adding again or if I think its just a pull back against me, I can exit with a smaller total loss?

No, catching extremes can be difficult so why risk so much? Also you can add enough to make up for the lower size. I think MO said .25% to .33% risk.

[BambinoFlex]

The box can be like that as long as you entered somewhere inside it.

As price went in your favor you would add +1+2+4+8 units or whatever you are comfortable with.

As price comes back toward your entry you need to close out some profit then re-enter at a better price. Then as it moves in your favor you add +1+2+4+8+16

You do the adding and liquidating until you get the move you are looking for or you would rather close out and look at something else.

Why use the box?
It might start out at half your normal risk and it gives you staying power for the times you would of got wicked out with a tight stop.

You don't wait until your stop is hit. You need criteria to exit. So now you might be risking only 1/3 of your normal risk on average.

Okay, I'm getting a picture in my head. I think drawing it up and trying to figure out the questions is helping me.

Do I start with my full position based on the size of the box? As price moves against me, do I cut partials to lessen the total from being used up? But If price does turn around, then I can start adding again or if I think its just a pull back against me, I can exit with a smaller total loss?

No, catching extremes can be difficult so why risk so much? Also you can add enough to make up for the lower size. I think MO said .25% to .33% risk.

It’s all relative

For example, me trading weekly extremes, limiting myself to Monday-Wednesday for the Pre London 4hr pivots with usually two pairs only amounts to about 6 trading opportunities. It’s still a big number but I’m not trying to buy every time a new low is established or sell every time a new high is made. My entries are defined by price and specifically, most importantly actually…time.

[TheRumpledOne]

TRO001.png (25.28 KiB) Viewed 2421 times

TRO002.png (34.81 KiB) Viewed 2421 times

TRO003.png (34.6 KiB) Viewed 2421 times

I ran the price travel analyzer for daily, weekly monthly.

[BambinoFlex]

Yup! Those are the numbers in the price analyzer. Originally I started with targeting S1 or R1 but I found targeting previous high/low to be better

[TheRumpledOne]

TRO002.png (55.87 KiB) Viewed 2392 times

TRO001.png (59.47 KiB) Viewed 2392 times

TRO003.png (59.01 KiB) Viewed 2392 times

Market open, charts updated.

I updated the indicator.