Market conditions truly require intraday analysis of pivot and support and resistance. Use our online calculation models by signing on to the website: http://www.oexoptions.com to use the pivot point and Fibonnaci calculator to review changing market moves. This can make your trading more effective.
Market conditions of now typical 100 plus point moves necessitate this re-calculation to catch the shifting of the market.
Fibonacci shows 38%/62/50 Retracements. Support and resistance lines are often built around where the market first moves in this tightening. Pay careful attention to Retracements in relation to support and resistance lines. The 50% retracement area should be noted first for where these new support and resistance lines could be created.
Rule #1: If the day's price action starts above the pivot point within the first 30 to 60 minutes of trading the market will typically stay above the pivot for the trading day. Conversely, if the first 30 to 60 minutes of trading is below the pivot it is typically a session where it stays below the pivot, or a bear day.
Rule #2: If the market opens and "trades the edges" (R2 or R3, or S2 and S3) the market tends to trade the day "back" towards the pivot.
Rule #3: The further the price moves from the pivot the more we avoid buying the high or selling the low.
A strong up day can cause a low to come early and a high to come late; a strong down day can cause a high to come early and a low to come late.
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