Pivot Point day trading system

Pivot Point is a very simple and practical day-to-day trading method, a set of very simple and straightforward resistance support systems, probably invented by a future maker about 10 years ago, and is now widely used in high-volume commodities such as digital currencies, stocks, futures, government bonds, indices. The classic Pivot Point is a 7-point system, which consists of 7 prices, and the currently widely used 13-point system is actually the same, but with an additional 6 prices, for high-volume commodities.

pivot:= (high + low + close) / 3;（前一天的最高、最低和收盘）
r1:= 2*pivot - low;s1:= 2*pivot - high;r2:= pivot + (r1-s1);
s2:= pivot - (r1-s1);
r3:= high - (2 * (low - pivot));
s3:= low - (2 * (high - pivot));
sm1:=(pivot+s1)/2;
sm2:=(s1+s2)/2;
sm3:=(s2+s3)/2;
rm1:=(pivot+r1)/2;
rm2:=(r1+r2)/2;
rm3:=(r2+r3)/2;

The pivot is the so-called axis, the center of the resistance system, the other r/s are resistance and support, with m being the center price of the two resistance lines.

• The pivot has an attractive effect, in the absence of a large multi-head or empty-head entry, the price moves around the axis between r1 and s1, but the movement may be irregular. Someone specializing in this range is called a floor trader.

• Under the pressure of a strong bullish or bearish trend, the price breaks out of the s1-r1 area, which is then trending, but still within the normal range of price movement. There is a strong sense of direction within this range, and most of the time the price movement is close to r1, r2 or s1, s2, and the stay in the middle area is not long.

• r3 and s3 are extreme prices, where there is no special profit margin or good news. This price is more significant, often (note, not necessarily) accompanied by special circumstances, such as the reversal of the single-top v, etc. It is possible to run a marathon, which in general is an opportunity that day traders cannot miss.

• The price of the other m-bands is also stable, but the entry reference is not very significant.

This system, although calculated on the basis of special prices, does not imply the use of machinery, and the construction of this system is based on the classification of the various roles in the market.

Number does not mean anything, price movement does.

If the price moves in the region of r1-s1 all day, who do you think the traders in this market are? Are they long line investors? Are they major players?

When you get to the r2-s2 zone, the big money makers appear, the big funds start to come out, pay attention, this time is in the bull market bubble, maybe it's the beginning of a market, maybe it's the continuation of the market. At this stage, all you have to do is find a good entry position, follow the trend. But the problem arises, after reaching this zone, often good entry prices have passed, what happens?

r3-s3, strong trends. They are called extreme prices, which means that they can only happen under extreme conditions. The participants at this time are far from a few funds, a few investors can do it, maybe the central bank, maybe Soros, but whoever it is, the fact behind it is too hard to say, technical analysis tools simply cannot work.

We all trade in the marketplace, buying and selling every day, but have you ever thought about who your opponent is, who sold you, what he did when you made money, what he did when you lost money?

The market is a hard and soft thing, it always goes with the money, so we have to keep up with the market to keep up with the big money. In this sense, the market is not a casino, it is a battlefield, a real battle of position. If you choose investors like you as your opponents, you may win; if you choose the big money that drives the market, what will happen?